5 Most Undervalued Dow Stocks to Buy According to Wall Street Analysts

4. McDonald’s Corporation (NYSE:MCD)

Price Target Upside: 20.08%

P/E Ratio: 20.58

McDonald’s Corporation (NYSE:MCD) is among the most undervalued stocks.

TheFly reported on June 29 that KeyBanc reduced its price target on MCD to $315 from $330 while maintaining an Overweight rating on the shares. The firm revised its forecasts lower after lowering expectations for near-term U.S. same-store sales performance. KeyBanc noted that although MCD has shown some positive developments during the second quarter, the company’s core operations have not yet regained significant momentum after a difficult April. Despite ongoing concerns surrounding the company’s updated strategy and upcoming comparisons, the firm believes the stock’s valuation near historical lows limits downside risk. KeyBanc continues to view MCD’s as a strong long-term investment opportunity.

In another development, on June 1, McDonald’s Corporation (NYSE:MCD) Chairman and CEO Chris Kempczinski introduced the company’s next growth strategy, called “McDonald’s greater than NEXT.” The initiative focuses on strengthening the brand’s position by increasing customer visits, improving restaurant performance, and adapting to changing consumer expectations. Kempczinski highlighted the company’s progress in areas such as loyalty, cultural connection, and operational capabilities, while emphasizing the need to continue improving value, hospitality, convenience, and quality. The strategy aims to guide McDonald’s next phase of growth by helping the company remain the preferred choice for customers worldwide.

McDonald’s Corporation (NYSE:MCD) is a global fast-food leader with over 41,800 locations, serving millions daily through its restaurant and franchise-based business model.