It seems as though gravity is finally weighing on the valuations in the consumer space, as stocks like Nike (NYSE:NKE), Coca-Cola (NYSE:KO), and McDonald's (NYSE:MCD)
have underperformed over the past quarter. Worries tied to the ongoing
sluggishness in China and margins may be the preferred talking points,
but it's hard to overlook how expensive many of these consumer stocks
got.
Turning back to McDonald's, there are now some worries about near-term
performance, as management's comments on same-store sales suggest
slowing growth. While I think selling McDonald's shares because of a
couple months' worth of same-store sales is more of a justification than
a reason, and I have every confidence that McDonald's will continue to
find ways to continue growing, the shares are still well above what I'd
call bargain territory.
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