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Medtronic (MDT) Stock Declines While Market Improves: Some Information for Investors

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The most recent trading session ended with Medtronic (MDT - Free Report) standing at $84.25, reflecting a -1.01% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.1%. Meanwhile, the Dow lost 0.21%, and the Nasdaq, a tech-heavy index, added 0.72%.

Shares of the medical device company have appreciated by 3.33% over the course of the past month, outperforming the Medical sector's loss of 1.22% and lagging the S&P 500's gain of 9.86%.

The investment community will be paying close attention to the earnings performance of Medtronic in its upcoming release. The company is slated to reveal its earnings on May 21, 2025. The company is expected to report EPS of $1.58, up 8.22% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.81 billion, up 2.57% from the year-ago period.

Any recent changes to analyst estimates for Medtronic should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection remained stagnant. Medtronic currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Medtronic has a Forward P/E ratio of 14.6 right now. Its industry sports an average Forward P/E of 18.23, so one might conclude that Medtronic is trading at a discount comparatively.

Meanwhile, MDT's PEG ratio is currently 2.01. 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. As of the close of trade yesterday, the Medical - Products industry held an average PEG ratio of 2.22.

The Medical - Products industry is part of the Medical sector. With its current Zacks Industry Rank of 172, this industry ranks in the bottom 31% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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