Back to top

Image: Bigstock

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

Read MoreHide Full Article

Medical Properties (MPW - Free Report) closed the most recent trading day at $16.55, moving +1.91% from the previous trading session. This change outpaced the S&P 500's 0.93% loss on the day. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq lost 0.17%.

Prior to today's trading, shares of the health care real estate investment trust had gained 7.91% over the past month. This has outpaced the Finance sector's gain of 3.57% and the S&P 500's gain of 6.31% in that time.

Wall Street will be looking for positivity from Medical Properties as it approaches its next earnings report date. In that report, analysts expect Medical Properties to post earnings of $0.45 per share. This would mark year-over-year growth of 4.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $396.4 million, up 3.83% from the year-ago period.

MPW's full-year Zacks Consensus Estimates are calling for earnings of $1.82 per share and revenue of $1.6 billion. These results would represent year-over-year changes of +4% and +3.48%, respectively.

It is also important to note the recent changes to analyst estimates for Medical Properties. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.64% lower. Medical Properties is holding a Zacks Rank of #4 (Sell) right now.

In terms of valuation, Medical Properties is currently trading at a Forward P/E ratio of 8.94. Its industry sports an average Forward P/E of 12.97, so we one might conclude that Medical Properties is trading at a discount comparatively.

Investors should also note that MPW has a PEG ratio of 0.89 right now. 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. 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 85, putting it in the top 34% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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