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1 Stock to Buy, 1 Stock to Sell This Week: McDonald&rsquo;s, AMD | Investing.com

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By Investing.comStock Marketswww.investing.com/analysis/1-stock-to-buy-1-stock-to-sell-this-week-mcdonalds-amd-2006431251 Stock to Buy, 1 Stock to Sell This Week: McDonald’s, AMDBy Investing.com &nbsp;&nbsp;|&nbsp;&nbsp;Oct 29, 2023 07:43AM ET6&nbsp;MCD+0.78%Add to WatchlistAdd PositionPosition added successfully to:&nbsp;+ Add another positionCloseAMD+2.41%Add to WatchlistAdd PositionPosition added successfully to:&nbsp;+ Add another positionCloseStocks on Wall Street closed mostly lower on Friday to cap off another losing week as investors digested the latest round of corporate earnings results while continuing to focus on the Federal Reserve’s outlook for interest rates.For the week, the blue-chip declined 2.1%, while the benchmark and the tech-heavy tumbled 2.5% and 2.6% respectively.The recent selloff in the ‘Magnificent 7’ group of mega-cap tech stocks pushed both the S&amp;P and the Nasdaq into correction territory, having both closed more than 10% below their highs in July.The blockbuster week ahead is expected to be action-packed with several key market-moving events as the , including the Fed’s latest policy decision, as well as a flurry of heavyweight economic data and earnings reports.The U.S. central bank is almost certain to keep its in a range of 5.25%-5.50% at the conclusion of its two-day policy meeting on Wednesday, November 1.Fed Chair Jerome Powell’s comments on the future direction of monetary policy will be in focus as investors ramp up bets that the Fed is all done raising rates.Elsewhere, on the economic calendar, most important will be Friday’s U.S. employment report for October, which is forecast to show the economy added 182,000 positions, slowing from jobs growth of 336,000 in September. The unemployment rate is seen holding steady at 3.8%.Meanwhile, the Q3 corporate earnings season continues in earnest with reports expected from high-profile companies, such as Apple (NASDAQ:), Qualcomm (NASDAQ:), PayPal (NASDAQ:), Block (NYSE:), Shopify (NYSE:), Coinbase (NASDAQ:), DraftKings (NASDAQ:), Palantir (NYSE:), Pinterest (NYSE:), and Roku (NASDAQ:).Some of the other notable reporters include Airbnb (NASDAQ:), Caterpillar (NYSE:), Eli Lilly (NYSE:), Pfizer (NYSE:), Moderna (NASDAQ:), CVS Health (NYSE:), Kraft Heinz (NASDAQ:), Yum! Brands (NYSE:), Starbucks (NASDAQ:), and Anheuser Busch (NYSE:).Regardless of which direction the market goes next week, below I highlight one stock likely to be in demand and another which could see fresh downside.Remember though, my timeframe is just for the week ahead, Monday, October 30 - Friday, November 3.I expect McDonald’s (NYSE:) to outperform in the week ahead, as the fast-food giant’s latest earnings report will surprise to the upside, in my opinion, thanks to favorable consumer demand trends and a strong fundamental outlook.McDonald’s is scheduled to deliver its third quarter results before the U.S. market open on Monday, October 30 at 7:00AM ET, and results are likely to benefit from higher menu prices as U.S. consumers flock to its restaurants amid the current economic climate.Options trading implies a roughly 3.5% swing for MCD shares after the numbers drop.Many Americans have cut back spending at traditional full-service restaurants in response to a slowing economy and persistently high inflation, boosting demand for McDonald’s iconic lineup of ‘Big Mac’ burgers and chicken ‘McNuggets’.Not surprisingly, an InvestingPro survey of analyst earnings revisions points to mounting optimism ahead of the update, with analysts growing increasingly bullish on the fast-food chain.Profit estimates have been revised upward 18 times in the past 90 days, while 29 analysts have a Buy-equivalent rating on the stock vs. eight Hold-equivalent ratings and zero Sell-equivalent ratings.Consensus expectations call for McDonald’s to post third quarter earnings of $2.99 per share, rising 12% from EPS of $2.68 in the year-ago period. Revenue is also seen jumping double-digits, improving 11.7% year-over-year to $6.56 billion.If that is in fact confirmed, it would mark McDonald’s largest quarterly sales total in eight years, dating back to Q3 2015, as the fast-food giant benefits from higher menu prices, unique marketing promotions, and a successful digital loyalty program.U.S. same-store sales - which surged 10.3% in Q2 - will likely top estimates again as U.S. consumers flock to its stores amid the current economic backdrop of elevated inflation and lingering recession fears.McDonald’s has missed Wall Street’s top line expectations only once in the past ten quarters, while trailing revenue estimates twice in that span, a testament to the resilience of its underlying business and strong execution across the company.Looking ahead, I believe the burger chain will provide solid profit and sales guidance for the rest of the year as it remains well positioned to thrive despite an uncertain macro environment.MCD stock ended Friday’s session at $255.76, not far from a recent 52-week low of $245.73 reached on October 6.McDonald’s, which is one of the thirty components of the Dow Jones Industrial Average, has come under pressure in recent weeks amid the broader market selloff, which saw it wipe out its gains for the year.With just two months left in 2023, MCD shares are down 3% year-to-date, and are nearly 15% below their July peak of $299.35.The Chicago, Illinois-based fast-food company has a market cap of $186.4 billion at its current valuation, making it the world’s biggest quick-service restaurant chain.I believe Advanced Micro Devices (NASDAQ:) will suffer a challenging week ahead, as the semiconductor company’s upcoming earnings report will likely reveal a sharp slowdown in both profit and sales growth due to a weak PC market.AMD is scheduled to deliver its third quarter update after the U.S. market close on Tuesday, October 31 at 4:15PM ET. A call with CEO Lisa Su is set for 5:00PM ET.Market participants expect a sizable swing in AMD shares following the print, as per the options market, with a possible implied move of about 9% in either direction. Shares declined 4.4% after its last earnings report in early August.Underscoring several near-term headwinds AMD faces amid the current environment, analysts have cut their EPS estimates 28 times in the three months leading up to the earnings update, compared to just three upward revisions, as per an Investing Pro survey.Wall Street sees the Santa Clara, California-based chipmaker earning $0.68 a share in the third quarter, up a fraction from EPS of $0.67 in the year-ago period. If that is reality, it would mark AMD’s fifth consecutive quarter of declining earnings on a year-over-year basis.Meanwhile, revenue is expected to inch up 2% annually to $5.69 billion, reflecting softening demand for PC and server chips.Looking ahead, it is my belief that AMD’s management will strike a cautious tone in its forward guidance given the potential for slower near-term data center demand and a sluggish PC market.AMD competes with Intel (NASDAQ:) in making central processing units (CPUs) for personal computers and servers. It also rivals Nvidia (NASDAQ:) in the market for graphics processing units (GPUs) for PCs, gaming consoles and data centers.AMD stock sank to a near six-month low of $93.11 on Thursday, before closing the week at $96.43 on Friday. At its current valuation, AMD has a market cap of $155.8 billion.Shares are down 27.4% from their 2023 high of $133 reached in mid-June, though still up nearly 49% on the year.In comparison, Nvidia is up 177% year-to-date, Intel has gained 34.5%, while the Philadelphia SE Semiconductor Index has tacked on about 28%.Be sure to check out InvestingPro to stay in sync with the market trend and what it means for your trading decisions.Disclosure: At the time of writing, I am short on the S&amp;P 500, Nasdaq 100, and Russell 2000 via the ProShares Short S&amp;P 500 ETF (SH), ProShares Short QQQ ETF (PSQ), and ProShares Short Russell 2000 ETF (RWM). I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies' financials. The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.1 Stock to Buy, 1 Stock to Sell This Week: McDonald’s, AMD6Comments (6)6Russell 2000 Testing Critical Price Support After Rare 100-Week...It’s been a dreadful past couple of years for the&nbsp;Russell 2000 (NYSE:IWM)&nbsp;and small-cap stocks.Only in 2009 have small caps performed worse over a 100-week period – point (1) on...Airbnb Q3 Earnings: Will Travel Industry Recovery Finally Catapult...Airbnb enjoyed a post-IPO surge but faced a downturn due to COVID-19Upcoming Q3 results are crucial for the company after a recent stock declineAnalysts have optimistic forecasts...PayPal Earnings Preview: Can New CEO's Plans Breathe Life Into the...PayPal's stock has been in a two-year downtrend due to fierce competition and falling profitsThe new CEO, Alex Chriss, is expected to focus on SMBs and in-store payments to try...Add a CommentComment Guidelines&nbsp;I have read Investing.com's comments guidelines and agree to the terms described.I AgreeWrite your thoughts hereAre you sure you want to delete this chart?Delete Cancel&nbsp;PostReplace the attached chart with a new chart ?Replace CancelComment GuidelinesShareFollow this postUnfollow this postSaveBlock UserReplyShareFollow this postUnfollow this postSaveBlock UserReplyShareFollow this postUnfollow this postSaveBlock UserReplyShareFollow this postUnfollow this postSaveBlock UserReplyShareFollow this postUnfollow this postSaveBlock UserReplyShareFollow this postUnfollow this postSaveBlock UserReplyShareFollow this postUnfollow this postSaveBlock UserReplyShareFollow this postUnfollow this postSaveBlock UserReplyAre you sure you want to delete this chart?Delete Cancel&nbsp;PostReplace the attached chart with a new chart ?Replace CancelComment GuidelinesAdd Chart to CommentCancelAttachConfirm BlockAre you sure you want to block %USER_NAME%?By doing so, you and %USER_NAME% will not be able to seeany of each other's Investing.com's posts.%USER_NAME% was successfully added to your Block ListSince you’ve just unblocked this person, you must wait 48 hours before renewing the block.Confirm Block CancelOkReport this commentI feel that this comment is:SpamOffensiveSubmitComment flaggedThank You!Your report has been sent to our moderators for reviewCloseTabs SelectionIndicesCommoditiesBondsStocksCryptoForexETFsApply&nbsp;US 3032,987.0-65.9-0.20%&nbsp;&nbsp;US 5004,183.4-10.4-0.25%&nbsp;&nbsp;Dow Jones33,052.87+123.91+0.38%&nbsp;&nbsp;S&amp;P 5004,193.80+26.98+0.65%&nbsp;&nbsp;Nasdaq12,851.24+61.76+0.48%&nbsp;&nbsp;S&amp;P 500 VIX18.14-1.61-8.15%&nbsp;&nbsp;Dollar Index106.560+0.626+0.59%&nbsp;&nbsp;Crude Oil WTI81.53+0.17+0.21%&nbsp;&nbsp;Brent Oil85.57+0.26+0.30%&nbsp;&nbsp;Natural Gas3.604-0.002-0.06%&nbsp;&nbsp;Gold1,992.85+0.10+0.01%&nbsp;&nbsp;Silver22.950-0.012-0.05%&nbsp;&nbsp;Copper3.6505-0.0020-0.05%&nbsp;&nbsp;US Soybeans1,311.75+5.75+0.44%&nbsp;&nbsp;U.S. 10Y4.928+0.051+1.04%&nbsp;&nbsp;U.S. 30Y5.090+0.066+1.31%&nbsp;&nbsp;U.S. 5Y4.846+0.029+0.59%&nbsp;&nbsp;U.S. 3M5.491+0.003+0.05%&nbsp;&nbsp;US 10Y T-Note105.91-0.27-0.25%&nbsp;&nbsp;Euro Bund128.50-0.23-0.18%&nbsp;&nbsp;10-2 Yield Spread-16.41+0.73+-4.26%&nbsp;&nbsp;Apple170.77+0.48+0.28%&nbsp;&nbsp;Alphabet A124.08-0.38-0.31%&nbsp;&nbsp;Tesla200.84+3.48+1.76%&nbsp;&nbsp;Amazon.com133.09+0.38+0.29%&nbsp;&nbsp;Netflix411.69+1.61+0.39%&nbsp;&nbsp;Meta Platforms301.27-1.39-0.46%&nbsp;&nbsp;Bank of America26.34+0.65+2.53%&nbsp;Most Popular ArticlesAMD Q3 results top estimates, but revenue guidance falls shortOil down 2nd day in row, poised for huge October lossWall St closes higher on eve of Fed decision; investors assess...Stock Market Today: Dow ends higher, but can't escape 3rd monthly...Fed meeting in focus, Chinese factory data disappoints -- what's...More News&nbsp;1 Stock to Buy, 1 Stock to Sell This Week: McDonald’s, AMD5 Nightmarish Stocks You'd Rather Avoid This HalloweenS&amp;P 500 Sets Sights on 4200 as Volatility Eases: What to Expect NextS&amp;P 500 Nears 200 DMA, Nasdaq in Bull Trap, Russell 2000 Faces Key...Bitcoin Eyes ‘Golden Cross’ Ahead of Fed, Key Economic Data: What Lies...More Analysis&nbsp;Central Banks Rates&nbsp;Central BanksInterest RatesNext Meeting&nbsp;&nbsp;FED5.50%Nov 01, 2023&nbsp;&nbsp;ECB4.50%Dec 14, 2023&nbsp;&nbsp;BOE5.25%Nov 02, 2023&nbsp;&nbsp;SNB1.75%Dec 14, 2023&nbsp;&nbsp;RBA4.10%Nov 07, 2023&nbsp;&nbsp;BOC5.00%Dec 06, 2023&nbsp;&nbsp;RBNZ5.50%Nov 29, 2023&nbsp;&nbsp;BOJ-0.10%Oct 31, 2023&nbsp;&nbsp;CBR15.00%Dec 15, 2023&nbsp;&nbsp;RBI6.50%Dec 08, 2023&nbsp;&nbsp;PBOC3.45%&nbsp;&nbsp;BCB12.75%Nov 01, 2023&nbsp;Sign up with Email

By Investing.comStock Marketswww.investing.com/analysis/1-stock-to-buy-1-stock-to-sell-this-week-mcdonalds-amd-2006431251 Stock to Buy, 1 Stock to Sell This Week: McDonald’s, AMDBy Investing.com &nbsp;&nbsp;|&nbsp;&nbsp;Oct 29, 2023 07:43AM ET6&nbsp;MCD+0.78%Add to WatchlistAdd PositionPosition added successfully to:&nbsp;+ Add another positionCloseAMD+2.41%Add to WatchlistAdd PositionPosition added successfully to:&nbsp;+ Add another positionCloseStocks on Wall Street closed mostly lower on Friday to cap off another losing week as investors digested the latest round of corporate earnings...

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1 Stock to Buy, 1 Stock to Sell This Week: McDonald’s, AMD | Investing.com