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Medtronic (MDT) Advances But Underperforms Market: Key Facts

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Medtronic (MDT - Free Report) closed the latest trading day at $83.68, indicating a +0.11% change from the previous session's end. The stock lagged the S&P 500's daily gain of 0.96%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, added 1.3%.

Prior to today's trading, shares of the medical device company had lost 3.41% over the past month. This has lagged the Medical sector's gain of 1.18% and the S&P 500's gain of 3.69% in that time.

The investment community will be paying close attention to the earnings performance of Medtronic in its upcoming release. The company is slated to reveal its earnings on February 20, 2024. The company is predicted to post an EPS of $1.26, indicating a 3.08% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $7.95 billion, indicating a 2.91% upward movement from the same quarter last year.

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.

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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 remained stagnant. Currently, Medtronic is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, Medtronic is currently exchanging hands at a Forward P/E ratio of 16.19. This valuation marks a discount compared to its industry's average Forward P/E of 20.

Investors should also note that MDT has a PEG ratio of 2.92 right now. 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. By the end of yesterday's trading, the Medical - Products industry had an average PEG ratio of 2.37.

The Medical - Products industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 162, finds itself in the bottom 36% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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