Back to top

Image: Bigstock

Medtronic (MDT) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Medtronic (MDT - Free Report) closed at $122.29 in the latest trading session, marking a -0.59% move from the prior day. This change lagged the S&P 500's 0.35% loss on the day.

Heading into today, shares of the medical device company had lost 0.42% over the past month, lagging the Medical sector's gain of 5.24% and the S&P 500's gain of 7.11% in that time.

Investors will be hoping for strength from MDT as it approaches its next earnings release, which is expected to be November 23, 2021. In that report, analysts expect MDT to post earnings of $1.29 per share. This would mark year-over-year growth of 26.47%. Our most recent consensus estimate is calling for quarterly revenue of $7.98 billion, up 4.3% from the year-ago period.

It is also important to note the recent changes to analyst estimates for MDT. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. MDT currently has a Zacks Rank of #4 (Sell).

Investors should also note MDT's current valuation metrics, including its Forward P/E ratio of 21.59. For comparison, its industry has an average Forward P/E of 25.47, which means MDT is trading at a discount to the group.

Also, we should mention that MDT has a PEG ratio of 2.46. 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 Medical - Products was holding an average PEG ratio of 2.15 at yesterday's closing price.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Medtronic PLC (MDT) - free report >>

Published in