Course 405: Classic-Growth Stocks
How Has the Stock Performed?
In this course
1 Introduction
2 How Fast Has It Been Growing?
3 What Are the Trends in Growth Rates?
4 Where Is Growth Coming From?
5 Is Profitability Keeping Pace with Growth?
6 What Is the Company Doing with Its Profits?
7 Is the Company's Debt Leverage Increasing?
8 How Has the Stock Performed?
9 How Do the Stock's Price Valuations Compare with Those of Similar Firms?
10 Conclusion: Quality versus Price

Like the company's sales and earnings, McDonald's stock has performed quite consistently. It made gains every year from 1994 to 1999, often outperforming the S&P 500. In typical classic-growth-stock fashion, most of McDonald's total return has been from capital gains, not income. Because of their predictable and steady earnings, classic-growth stocks should be less risky than speculative-growth or aggressive-growth stocks. Looking at measures of past volatility, such as the worst three-month return, can give an indication of how risky the stock has been. McDonald's worst three-month return of -16% is significantly better than the classic-growth average.

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