Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Medical Properties (MPW - Free Report) closed at $15.72, marking a +1.55% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.11%.

Coming into today, shares of the health care real estate investment trust had lost 16.69% in the past month. In that same time, the Finance sector lost 3.72%, while the S&P 500 lost 0.62%.

Medical Properties will be looking to display strength as it nears its next earnings release. On that day, Medical Properties is projected to report earnings of $0.45 per share, which would represent year-over-year growth of 4.65%. Our most recent consensus estimate is calling for quarterly revenue of $398.75 million, up 4.44% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.84 per share and revenue of $1.62 billion. These totals would mark changes of +5.14% and +4.81%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Medical Properties. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. Medical Properties currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Medical Properties is currently trading at a Forward P/E ratio of 8.4. Its industry sports an average Forward P/E of 12.92, so we one might conclude that Medical Properties is trading at a discount comparatively.

Also, we should mention that MPW has a PEG ratio of 0.84. 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 REIT and Equity Trust - Other was holding an average PEG ratio of 2.43 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 107, putting it in the top 43% 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.

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

In-Depth Zacks Research for the Tickers Above

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

Medical Properties Trust, Inc. (MPW) - free report >>

Published in