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Medtronic (MDT) Outperforms Broader Market: What You Need to Know

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Medtronic (MDT - Free Report) closed the latest trading day at $90.07, indicating a +0.92% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 0.41%. Meanwhile, the Dow experienced a rise of 0.69%, and the technology-dominated Nasdaq saw an increase of 0.8%.

The medical device company's stock has climbed by 1.69% in the past month, exceeding the Medical sector's loss of 4.61% and the S&P 500's loss of 0.97%.

Analysts and investors alike will be keeping a close eye on the performance of Medtronic in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.24, marking a 0.8% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $8.26 billion, indicating a 3.47% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.44 per share and a revenue of $33.6 billion, indicating changes of +4.62% and +3.81%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Medtronic. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.33% fall in the Zacks Consensus EPS estimate. 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 16.42 right now. For comparison, its industry has an average Forward P/E of 22.79, which means Medtronic is trading at a discount to the group.

Investors should also note that MDT has a PEG ratio of 2.55 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. The Medical - Products industry currently had an average PEG ratio of 1.87 as of yesterday's close.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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