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Medical Properties (MPW) Registers a Bigger Fall Than the Market: Important Facts to Note

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Medical Properties (MPW - Free Report) closed at $4.07 in the latest trading session, marking a -2.16% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.4% for the day. Elsewhere, the Dow saw a downswing of 0.98%, while the tech-heavy Nasdaq appreciated by 0.18%.

Shares of the health care real estate investment trust witnessed a loss of 6.09% over the previous month, trailing the performance of the Finance sector with its gain of 4.41%, and the S&P 500's gain of 4.97%.

Investors will be eagerly watching for the performance of Medical Properties in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.13, marking a 43.48% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $228.55 million, down 14.26% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.55 per share and a revenue of $919.34 million, signifying shifts of -31.25% and -7.65%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Medical Properties. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.35% decrease. Medical Properties is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Medical Properties is currently being traded at a Forward P/E ratio of 7.52. This represents a discount compared to its industry average Forward P/E of 11.73.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 147, finds itself in the bottom 41% echelons of all 250+ industries.

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.

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


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