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Medtronic (MDT) Stock Sinks As Market Gains: Here's Why

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Medtronic (MDT - Free Report) ended the recent trading session at $72.48, demonstrating a -1.28% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.9%.

The the stock of medical device company has fallen by 2.28% in the past month, lagging the Medical sector's loss of 1.42% and the S&P 500's gain of 1.45%.

The upcoming earnings release of Medtronic will be of great interest to investors. The company's earnings report is expected on November 21, 2023. The company is forecasted to report an EPS of $1.18, showcasing a 9.23% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $7.92 billion, indicating a 4.36% growth compared to the corresponding quarter of the prior year.

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.

Investors might also notice recent changes to analyst estimates for Medtronic. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Medtronic is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Medtronic currently has a Forward P/E ratio of 14.35. This valuation marks a discount compared to its industry's average Forward P/E of 18.27.

We can additionally observe that MDT currently boasts a PEG ratio of 2.58. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Products was holding an average PEG ratio of 2.58 at yesterday's closing price.

The Medical - Products industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 148, finds itself in the bottom 42% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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