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Medtronic (MDT) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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Medtronic (MDT - Free Report) closed the latest trading day at $89.36, indicating a +0.57% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.61%. Meanwhile, the Dow experienced a rise of 0.97%, and the technology-dominated Nasdaq saw an increase of 0.33%.

Shares of the medical device company witnessed a loss of 1.28% over the previous month, beating the performance of the Medical sector with its loss of 3.79% and underperforming the S&P 500's gain of 5.36%.

Market participants will be closely following the financial results of Medtronic in its upcoming release. The company's earnings per share (EPS) are projected to be $1.24, reflecting a 0.8% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.26 billion, up 3.47% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.44 per share and a revenue of $33.6 billion, representing changes of +4.62% and +3.81%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Medtronic. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.33% downward. Medtronic presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Medtronic currently has a Forward P/E ratio of 16.34. This signifies a discount in comparison to the average Forward P/E of 24.81 for its industry.

One should further note that MDT currently holds a PEG ratio of 2.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Products industry had an average PEG ratio of 1.91 as trading concluded yesterday.

The Medical - Products industry is part of the Medical sector. With its current Zacks Industry Rank of 69, this industry ranks in the top 28% of all industries, numbering over 250.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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