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Medtronic (MDT) Stock Sinks As Market Gains: Here's Why

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The latest trading session saw Medtronic (MDT - Free Report) ending at $87.72, denoting a -0.45% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.38%. Meanwhile, the Dow experienced a rise of 0.59%, and the technology-dominated Nasdaq saw an increase of 0.09%.

The medical device company's shares have seen a decrease of 0.82% over the last month, surpassing the Medical sector's loss of 1.71% and falling behind the S&P 500's gain of 4.9%.

The upcoming earnings release of Medtronic will be of great interest to investors. The company's earnings report is expected on November 19, 2024. The company is forecasted to report an EPS of $1.24, showcasing a 0.8% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $8.26 billion, reflecting a 3.47% rise from the equivalent quarter last year.

MDT's full-year Zacks Consensus Estimates are calling for earnings of $5.44 per share and revenue of $33.6 billion. These results would represent year-over-year changes of +4.62% and +3.81%, respectively.

Investors should also pay attention to any latest changes in 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.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Medtronic is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Medtronic is presently being traded at a Forward P/E ratio of 16.21. This denotes a discount relative to the industry's average Forward P/E of 24.68.

We can additionally observe that MDT currently boasts a PEG ratio of 2.52. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Medical - Products industry held an average PEG ratio of 2.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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