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Medtronic (MDT) Registers a Bigger Fall Than the Market: Important Facts to Note
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The most recent trading session ended with Medtronic (MDT - Free Report) standing at $83.92, reflecting a -1.27% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 1.23%. Meanwhile, the Dow experienced a drop of 1.36%, and the technology-dominated Nasdaq saw a decrease of 1.4%.
Heading into today, shares of the medical device company had lost 0.64% over the past month, outpacing the Medical sector's loss of 1.23% and lagging the S&P 500's gain of 1.61% in that time.
The investment community will be closely monitoring the performance of Medtronic in its forthcoming earnings report. The company is expected to report EPS of $1.45, down 7.64% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $8.44 billion, indicating a 1.25% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.20 per share and revenue of $32.21 billion, which would represent changes of -1.7% and +3.16%, respectively, from the prior 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, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Medtronic boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Medtronic has a Forward P/E ratio of 16.35 right now. For comparison, its industry has an average Forward P/E of 21.79, which means Medtronic is trading at a discount to the group.
It's also important to note that MDT currently trades at a PEG ratio of 2.91. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Products industry currently had an average PEG ratio of 2.39 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Medtronic (MDT) Registers a Bigger Fall Than the Market: Important Facts to Note
The most recent trading session ended with Medtronic (MDT - Free Report) standing at $83.92, reflecting a -1.27% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 1.23%. Meanwhile, the Dow experienced a drop of 1.36%, and the technology-dominated Nasdaq saw a decrease of 1.4%.
Heading into today, shares of the medical device company had lost 0.64% over the past month, outpacing the Medical sector's loss of 1.23% and lagging the S&P 500's gain of 1.61% in that time.
The investment community will be closely monitoring the performance of Medtronic in its forthcoming earnings report. The company is expected to report EPS of $1.45, down 7.64% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $8.44 billion, indicating a 1.25% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.20 per share and revenue of $32.21 billion, which would represent changes of -1.7% and +3.16%, respectively, from the prior 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, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Medtronic boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Medtronic has a Forward P/E ratio of 16.35 right now. For comparison, its industry has an average Forward P/E of 21.79, which means Medtronic is trading at a discount to the group.
It's also important to note that MDT currently trades at a PEG ratio of 2.91. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Products industry currently had an average PEG ratio of 2.39 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.