Back to top

Image: Bigstock

Medical Properties (MPW) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Medical Properties (MPW - Free Report) closed at $16.92 in the latest trading session, marking a +0.65% move from the prior day. The stock lagged the S&P 500's daily gain of 1.21%. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 0.16%.

Prior to today's trading, shares of the health care real estate investment trust had gained 5.46% over the past month. This has outpaced the Finance sector's gain of 1.97% and the S&P 500's gain of 3.2% in that time.

Medical Properties will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2022. 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%. 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 recent revisions tend to reflect the evolving nature of short-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, Medical Properties is holding a Forward P/E ratio of 9.26. For comparison, its industry has an average Forward P/E of 13.43, which means Medical Properties is trading at a discount to the group.

We can also see that MPW currently has a PEG ratio of 0.93. 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 2.47 at yesterday's closing price.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% 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.

You can find more information on all of these metrics, and much 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