The market continued its winning ways this past week, and the Alpha Algorithm has generated yet another seven-strategy stock.
Founded in 1940 and based in Oak Brook, Illinois, McDonald’s Corporation (MCD) operates and franchises McDonald’s restaurants across the globe. At the close of 2015, it operated 36,525 restaurants, including 30,081 franchised restaurants and 6,444 company-operated restaurants.
McDonald’s versus S&P 500
Seven Top Investment Strategies Betting on McDonald’s Corp. (MCD)
1. Insider Buying
MCD is among the U.S. stocks that corporate officers, directors and shareholders who own more than 5% of each company’s stock are accumulating.
2. Insider and Analyst Sentiment
One of 100 top stocks out of 5,000 U.S stocks where corporate insiders (a director or senior officer of a company, or any person or entity that owns more than 10% of the company’s stock) is buying the stock and Wall Street analysts have recently increased earnings estimates.
3. Fundamental Strength
A top U.S. stock is based on fundamentals measured by book value, cash flow and sales dividends.
4. Large Cap Growth
The stock is among the top 50 large-capitalization U.S. growth stocks generated through a rigorous 10-factor fundamental screening process.
5. Dividend Aristocrat
The stock is among those that have increased dividends for at least consecutive 25 years.
6. Hedge Fund Alpha
Based on publicly available disclosures, successful hedge fund managers are investing in the stock.
7. High Quality Stock
The stock exhibits positive fundamentals, including high return on equity, stable year-over-year earnings growth and low financial leverage.
Recommendation
Buy McDonald’s Corp. (MCD) at market today.
Place your initial stop at $113.00
Options
With the stock technically overbought over the short term, I am holding off on recommending options this week.
Sincerely,
Nicholas A. Vardy
