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Medtronic (MDT) Gains But Lags Market: What You Should Know

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Medtronic (MDT - Free Report) closed at $103.49 in the latest trading session, marking a +0.35% move from the prior day. The stock lagged the S&P 500's daily gain of 1.89%. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 0.73%.

Prior to today's trading, shares of the medical device company had lost 0.31% over the past month. This has was narrower than the Medical sector's loss of 10.76% and the S&P 500's loss of 7.36% in that time.

Investors will be hoping for strength from Medtronic as it approaches its next earnings release, which is expected to be February 22, 2022. The company is expected to report EPS of $1.38, up 6.98% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.94 billion, up 2.16% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Medtronic. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 0.12% lower. Medtronic currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Medtronic has a Forward P/E ratio of 18.13 right now. For comparison, its industry has an average Forward P/E of 21.15, which means Medtronic is trading at a discount to the group.

It is also worth noting that MDT currently has a PEG ratio of 2.69. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Products industry currently had an average PEG ratio of 1.52 as of yesterday's close.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 25% 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.

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

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