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Medical Properties (MPW) Outpaces Stock Market Gains: What You Should Know

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Medical Properties (MPW - Free Report) closed at $12.95 in the latest trading session, marking a +1.49% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.46%. Meanwhile, the Dow gained 1.09%, and the Nasdaq, a tech-heavy index, added 6.63%.

Heading into today, shares of the health care real estate investment trust had gained 14.54% over the past month, outpacing the Finance sector's gain of 6.24% and the S&P 500's gain of 4.75% in that time.

Wall Street will be looking for positivity from Medical Properties as it approaches its next earnings report date. This is expected to be February 23, 2023. In that report, analysts expect Medical Properties to post earnings of $0.43 per share. This would mark a year-over-year decline of 8.51%. Meanwhile, our latest consensus estimate is calling for revenue of $378.6 million, down 7.51% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Medical Properties. Recent revisions tend to reflect the latest near-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. 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 has moved 0.98% lower. Medical Properties is currently a Zacks Rank #4 (Sell).

In terms of valuation, Medical Properties is currently trading at a Forward P/E ratio of 7.23. For comparison, its industry has an average Forward P/E of 12.33, which means Medical Properties is trading at a discount to the group.

Meanwhile, MPW's PEG ratio is currently 0.72. 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. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 17% 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.

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