You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Medtronic (MDT) Gains As Market Dips: What You Should Know
In the latest trading session, Medtronic (MDT - Free Report) closed at $106.39, marking a +0.27% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.06%. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq lost 0.3%.
Coming into today, shares of the medical device company had lost 3.76% in the past month. In that same time, the Medical sector gained 4.74%, while the S&P 500 gained 5.76%.
Investors will be hoping for strength from Medtronic as it approaches its next earnings release. In that report, analysts expect Medtronic to post earnings of $1.38 per share. This would mark year-over-year growth of 6.98%. Our most recent consensus estimate is calling for quarterly revenue of $7.97 billion, up 2.46% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Medtronic. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.08% lower. Medtronic is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Medtronic currently has a Forward P/E ratio of 18.63. For comparison, its industry has an average Forward P/E of 23.23, which means Medtronic is trading at a discount to the group.
Also, we should mention that MDT has a PEG ratio of 2.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MDT's industry had an average PEG ratio of 1.97 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow MDT in the coming trading sessions, be sure to utilize Zacks.com.