We recently published a list of Top 10 Stocks Wall Street is Discussing. In this article, we are going to take a look at where McDonald’s Corp (NYSE:MCD) stands against other top stocks Wall Street is discussing.
Bill Strazzullo, Bell Curve Trading chief market strategist, said in a latest program on CNBC that the market rally that started during the peak of the pandemic driven by fiscal stimulus seems to have “tapped out.” The analyst sees more pain ahead:
“The bottom line of all this is that we’ve only started this. We’ll be lucky if we get out of this top to bottom only down 20%. I think eventually, across the indices—Dow, S&P, NASDAQ 100—we’ll end up being down 25% before it’s all done.”
Asked what he would advise to long-term investors, the analyst recommended taking some money off the table and bracing for more impact:
“It’s not anything very esoteric. Take some money off the table—you’ll be able to deploy that capital at much better levels later in the year. But right now, Trump is taking us not only into a trade war but into a full-blown recession. I think the mistake people are making is that we’ve been spoiled with these V bottoms—we go down 10 or 12% and then right back up. This is not going to be like that. We are going to be in for a much deeper drawdown and I think something that’s going to last a significant amount of time.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we picked 10 stocks making moves on important news. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A cook in a busy kitchen assembling cheeseburgers for orders.
McDonald’s Corp (NYSE:MCD)
Number of Hedge Funds Investors: 60
Josh Brown, CEO of Ritholtz Wealth Management, during a recent program on CNBC talked about McDonald’s Corp (NYSE:MCD).
“I’m saying, like, the sum total of all the people managing money have decided to be buying and accumulating McDonald’s in a choppy tape. I believe that there’s signal there, and I think that investors are smart. So this is an RSI of 66, which means it’s up, there’s momentum, but it’s not overbought. It’s about 3% below its 52-week high. It could take that level out on one green day. This name is up 8% in the past month, where most stocks have struggled. And what’s really interesting is Bill Gates—The Gates Foundation, which is a $42 billion pool of capital—just initiated a brand-new position in McDonald’s while selling down Microsoft and selling down Berkshire Hathaway. He— I say he—The Gates Foundation bought 334,000 shares at an estimated average cost of $297.40. That’s right around here. It’s about $100 million worth of stock, not a big position in the context of a $42 billion pool of capital, which means that position could be more, not less.”
Carillon Eagle Growth & Income Fund stated the following regarding McDonald’s Corporation (NYSE:MCD) in its Q3 2024 investor letter:
“McDonald’s Corporation (NYSE:MCD) performed well as it met the expectations of investors looking for improvements in relative market share trends. The company’s introductions of menu items at premium- and medium-price tiers are picking up pace, allowing it to capture value more effectively.”
Overall, MCD ranks 5th on our list of top stocks Wall Street is discussing. While we acknowledge the potential of MCD, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MCD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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