Score 8.6 (out of 10): MCDONALD’S CORP sets up for +6.7% rally in 2 months

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What’s Going On Here?

MCDONALD’S CORP is teaming up with artist Mariah Carey – making a limited edition line of Carey-themed merchandise during the Christmas period. Some analysts argue that paying down debt is no longer the company’s priority and rather investors might expect an accelerated pace in corporate share buy backs.

Why Now?

MCDONALD’S CORP has reached a new shorter-term high. Previously, during similar occasions, MCDONALD’S CORP shares had a median return of +6.7%, over the following 2 months – based on 10 historical occasions with 8 of those showing positive returns (80% hit ratio). This buy signal for MCDONALD’S CORP received a high score of 8.6 (out of 10). This insight was generated on 2021-December-7 with last price of 259.91.

What’s This Company About?

MCDONALD’S CORP is in the Retail-Restaurants business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth 4.1% more (average). Ticker symbol: MCD US.

What’s My Risk / Reward and Time Horizon?

We found 2 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 277.29 (+6.7%) has been reached. Based on MCDONALD’S CORP’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 249.51 (last price at 259.91), which is equivalent to a -4% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

8.3% (December-2021), 8.9% (December-2020), 6.6% (December-2019), 12.2% (December- 2018), 20.3% (December-2017), 1.8% (December-2016), 5.2% (December-2015), 11.5% (December-2014), 1.5% (December-2013), 14.8% (December-2012)

Historical Chart:

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Summary:

NameMCDONALD’S CORP
ViewUp
Star (1 to 10)8.6
Target+6.7%
Time2 months
Hit Rate80%

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