Is McDonald’s Corporation (MCD) A Good Stock To Buy?

With a general bullishness amongst the heavyweights, specific money managers have been driving this bullishness.  For example, Doug Silverman and Alexander Klabin’s Senator Investment Group made a $177.2 million investment in the stock during the quarter. The other funds with new positions in the stock are Kerr Neilson’s Platinum Asset Management, Neal Shah’s Valtura Capital Partners, and Josh Resnick’s Jericho Capital Asset Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as McDonald’s Corporation (NYSE:MCD) but similarly valued. These stocks are CVS Caremark Corporation (NYSE:CVS), Mastercard Inc (NYSE:MA), British American Tobacco PLC (ADR) (NYSEAMEX:BTI), and GlaxoSmithKline plc (ADR) (NYSE:GSK). All of these stocks’ market caps are closest to MCD’s market cap.

As you can see these stocks had an average of 44 hedge funds with bullish positions and the average amount invested in these stocks was $2.28 billion. That figure was $6.74 billion in MCD’s case. Mastercard Inc (NYSE:MA) is the most popular stock in this table. On the other hand British American Tobacco PLC (ADR) (NYSEAMEX:BTI) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks McDonald’s Corporation (NYSE:MCD) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None