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Medtronic (MDT) Stock Sinks As Market Gains: What You Should Know

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The latest trading session saw Medtronic (MDT - Free Report) ending at $79.35, denoting a -1.1% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.03% for the day. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq appreciated by 0.12%.

Shares of the medical device company witnessed a loss of 4.1% over the previous month, beating the performance of the Medical sector with its loss of 5.81% and underperforming the S&P 500's loss of 0.9%.

The investment community will be paying close attention to the earnings performance of Medtronic in its upcoming release. The company is forecasted to report an EPS of $1.45, showcasing a 7.64% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue 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.

It's also important for investors to be aware of any recent modifications to analyst estimates for Medtronic. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Medtronic is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Medtronic is currently being traded at a Forward P/E ratio of 15.43. This denotes a discount relative to the industry's average Forward P/E of 21.02.

One should further note that MDT currently holds a PEG ratio of 2.74. 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. MDT's industry had an average PEG ratio of 2.32 as of yesterday's close.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 102, putting it in the top 41% 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.

To follow MDT in the coming trading sessions, be sure to utilize Zacks.com.


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