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Medical Properties (MPW) Stock Sinks As Market Gains: What You Should Know

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Medical Properties (MPW - Free Report) closed at $12.34 in the latest trading session, marking a -1.2% move from the prior day. This move lagged the S&P 500's daily gain of 1.29%. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, lost 4.94%.

Prior to today's trading, shares of the health care real estate investment trust had gained 0.89% over the past month. This has lagged the Finance sector's gain of 4.46% and the S&P 500's gain of 5.64% in that time.

Wall Street will be looking for positivity from Medical Properties as it approaches its next earnings report date. This is expected to be February 23, 2023. On that day, Medical Properties is projected to report earnings of $0.43 per share, which would represent a year-over-year decline of 8.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $378.6 million, down 7.51% from the year-ago period.

Any recent changes to analyst estimates for Medical Properties should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.84% lower. Medical Properties is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, Medical Properties currently has a Forward P/E ratio of 7.08. Its industry sports an average Forward P/E of 12.49, so we one might conclude that Medical Properties is trading at a discount comparatively.

We can also see that MPW currently has a PEG ratio of 0.71. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The REIT and Equity Trust - Other was holding an average PEG ratio of 2.2 at yesterday's closing price.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 199, putting it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow MPW in the coming trading sessions, be sure to utilize Zacks.com.


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