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Medtronic (MDT) Rises As Market Takes a Dip: Key Facts

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The latest trading session saw Medtronic (MDT - Free Report) ending at $87.09, denoting a +0.01% adjustment from its last day's close. This change outpaced the S&P 500's 0.07% loss on the day.

The medical device company's shares have seen an increase of 6.32% over the last month, not keeping up with the Medical sector's gain of 7.37% and outstripping the S&P 500's gain of 3.98%.

The upcoming earnings release of Medtronic will be of great interest to investors. The company's earnings report is expected on February 20, 2024. The company's earnings per share (EPS) are projected to be $1.26, reflecting a 3.08% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.95 billion, up 2.91% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.16 per share and revenue of $32.07 billion. These totals would mark changes of -2.46% and +2.71%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Medtronic. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Medtronic presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Medtronic is currently trading at a Forward P/E ratio of 16.86. This indicates a discount in contrast to its industry's Forward P/E of 20.8.

Investors should also note that MDT has a PEG ratio of 3.04 right now. 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 2.61 at yesterday's closing price.

The Medical - Products industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 159, finds itself in the bottom 37% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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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