Click to EnlargeMcDonald’s (NYSE:MCD) is a global restaurant chain based in Chicago. You may have heard of it. Well, it was one of the leaders of the Dow Jones Industrials in the weak year of 2011 and then had a very hard time in 2012. But the iconic maker of Big Macs and Filet o’ Fish is back on track and should trade at least back to the $100 level over the next two months. The stock looks a bit overbought on the daily but on the monthly chart you can see that it is just rebounding over its 12-month average after its yearlong siesta.
Click to EnlargeLast Friday, MCD was one of the strongest stocks in the Dow Jones Industrials Average, up as much as 0.6% at one point before succumbing to the selling of the indexes near the end of the day. One of the troubles that big companies ran into this afternoon was a Bloomberg article that reported on an internal Wal-Mart (NYSE:WMT) email in which an executive was said to have called February sales “a disaster” and the first half of the month one of the worst on record. Since Wal-Mart and MCD have similar clienteles, that could potentially put a damper on Happy Meals. But still, the stock held up.
I’d recommend a buy at current levels.
InvestorPlace advisor Jon Markman operates the investment firm Markman Capital Insight. He also writes a daily swing trading newsletter, Trader’s Advantage which aims to capture profits of 15% to 40% and often as much at 100% to 200% in less than 90 days.
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