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Medtronic (MDT) Stock Sinks As Market Gains: Here's Why
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Medtronic (MDT - Free Report) closed the most recent trading day at $76.12, moving -0.04% from the previous trading session. This move lagged the S&P 500's daily gain of 1.18%. On the other hand, the Dow registered a gain of 0.87%, and the technology-centric Nasdaq increased by 1.6%.
The the stock of medical device company has fallen by 4.73% in the past month, lagging the Medical sector's loss of 3.03% and overreaching the S&P 500's loss of 5.17%.
The investment community will be closely monitoring the performance of Medtronic in its forthcoming earnings report. The company is predicted to post an EPS of $1.18, indicating a 9.23% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $7.92 billion, showing a 4.36% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.12 per share and revenue of $32.13 billion. These totals would mark changes of -3.21% and +2.88%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Medtronic. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% increase. As of now, Medtronic holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Medtronic is currently exchanging hands at a Forward P/E ratio of 14.89. This valuation marks a discount compared to its industry's average Forward P/E of 18.15.
One should further note that MDT currently holds a PEG ratio of 2.68. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Products was holding an average PEG ratio of 2.53 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 92, positioning it in the top 37% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Medtronic (MDT) Stock Sinks As Market Gains: Here's Why
Medtronic (MDT - Free Report) closed the most recent trading day at $76.12, moving -0.04% from the previous trading session. This move lagged the S&P 500's daily gain of 1.18%. On the other hand, the Dow registered a gain of 0.87%, and the technology-centric Nasdaq increased by 1.6%.
The the stock of medical device company has fallen by 4.73% in the past month, lagging the Medical sector's loss of 3.03% and overreaching the S&P 500's loss of 5.17%.
The investment community will be closely monitoring the performance of Medtronic in its forthcoming earnings report. The company is predicted to post an EPS of $1.18, indicating a 9.23% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $7.92 billion, showing a 4.36% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.12 per share and revenue of $32.13 billion. These totals would mark changes of -3.21% and +2.88%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Medtronic. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% increase. As of now, Medtronic holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Medtronic is currently exchanging hands at a Forward P/E ratio of 14.89. This valuation marks a discount compared to its industry's average Forward P/E of 18.15.
One should further note that MDT currently holds a PEG ratio of 2.68. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Products was holding an average PEG ratio of 2.53 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 92, positioning it in the top 37% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.