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Medical Properties (MPW) Stock Declines While Market Improves: Some Information for Investors

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Medical Properties (MPW - Free Report) closed at $4.33 in the latest trading session, marking a -1.37% move from the prior day. This change lagged the S&P 500's 0.78% gain on the day. Meanwhile, the Dow gained 1.14%, and the Nasdaq, a tech-heavy index, added 0.61%.

Heading into today, shares of the health care real estate investment trust had lost 2.44% over the past month, lagging the Finance sector's gain of 4.63% and the S&P 500's gain of 5.88%.

Analysts and investors alike will be keeping a close eye on the performance of Medical Properties in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.13, reflecting a 43.48% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $228.55 million, reflecting a 14.26% fall from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.55 per share and a revenue of $919.34 million, indicating changes of -31.25% and -7.65%, respectively, from the former 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 witnessed a 2.35% decrease. At present, Medical Properties boasts a Zacks Rank of #5 (Strong Sell).

With respect to valuation, Medical Properties is currently being traded at a Forward P/E ratio of 7.93. This expresses a discount compared to the average Forward P/E of 11.39 of its industry.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 156, finds itself in the bottom 37% echelons 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.

To follow MPW in the coming trading sessions, be sure to utilize Zacks.com.


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