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Medtronic (MDT) Rises Higher Than Market: Key Facts

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In the latest trading session, Medtronic (MDT - Free Report) closed at $84.76, marking a +0.19% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.15%. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq lost 0.09%.

The medical device company's shares have seen a decrease of 4.4% over the last month, not keeping up with the Medical sector's loss of 4.39% and the S&P 500's loss of 0.21%.

Market participants will be closely following the financial results of Medtronic in its upcoming release. The company plans to announce its earnings on May 21, 2025. It is anticipated that the company will report an EPS of $1.58, marking an 8.22% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $8.81 billion, up 2.57% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.46 per share and revenue of $33.48 billion, which would represent changes of +5% and +3.44%, respectively, from the prior year.

Any recent changes to analyst estimates for Medtronic should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Medtronic currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Medtronic is presently being traded at a Forward P/E ratio of 15.51. For comparison, its industry has an average Forward P/E of 15.74, which means Medtronic is trading at a discount to the group.

Also, we should mention that MDT has a PEG ratio of 2.13. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Medical - Products stocks are, on average, holding a PEG ratio of 2.13 based on yesterday's closing prices.

The Medical - Products industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 181, positioning it in the bottom 28% 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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