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Medtronic (MDT) Falls More Steeply Than Broader Market: What Investors Need to Know
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Medtronic (MDT - Free Report) closed the most recent trading day at $82.33, moving -1.75% from the previous trading session. This move lagged the S&P 500's daily loss of 0.95%. Meanwhile, the Dow experienced a drop of 1.09%, and the technology-dominated Nasdaq saw a decrease of 0.84%.
Prior to today's trading, shares of the medical device company had lost 2.26% over the past month. This has was narrower than the Medical sector's loss of 3.76% and lagged the S&P 500's gain of 1.78% in that time.
The investment community will be closely monitoring the performance of Medtronic in its forthcoming earnings report. In that report, analysts expect Medtronic to post earnings of $1.45 per share. This would mark a year-over-year decline of 7.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.44 billion, down 1.25% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.20 per share and a revenue of $32.21 billion, signifying shifts of -1.7% and +3.16%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Medtronic. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Medtronic presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Medtronic has a Forward P/E ratio of 16.12 right now. For comparison, its industry has an average Forward P/E of 21.89, which means Medtronic is trading at a discount to the group.
It is also worth noting that MDT currently has a PEG ratio of 2.87. 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. The Medical - Products industry currently had an average PEG ratio of 2.41 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. With its current Zacks Industry Rank of 97, this industry ranks in the top 39% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Medtronic (MDT) Falls More Steeply Than Broader Market: What Investors Need to Know
Medtronic (MDT - Free Report) closed the most recent trading day at $82.33, moving -1.75% from the previous trading session. This move lagged the S&P 500's daily loss of 0.95%. Meanwhile, the Dow experienced a drop of 1.09%, and the technology-dominated Nasdaq saw a decrease of 0.84%.
Prior to today's trading, shares of the medical device company had lost 2.26% over the past month. This has was narrower than the Medical sector's loss of 3.76% and lagged the S&P 500's gain of 1.78% in that time.
The investment community will be closely monitoring the performance of Medtronic in its forthcoming earnings report. In that report, analysts expect Medtronic to post earnings of $1.45 per share. This would mark a year-over-year decline of 7.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.44 billion, down 1.25% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.20 per share and a revenue of $32.21 billion, signifying shifts of -1.7% and +3.16%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Medtronic. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Medtronic presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Medtronic has a Forward P/E ratio of 16.12 right now. For comparison, its industry has an average Forward P/E of 21.89, which means Medtronic is trading at a discount to the group.
It is also worth noting that MDT currently has a PEG ratio of 2.87. 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. The Medical - Products industry currently had an average PEG ratio of 2.41 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. With its current Zacks Industry Rank of 97, this industry ranks in the top 39% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.