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Medtronic (MDT) Laps the Stock Market: Here's Why

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In the latest close session, Medtronic (MDT - Free Report) was up +2.38% at $92.20. This change outpaced the S&P 500's 0.13% gain on the day. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq lost 0.22%.

The stock of medical device company has fallen by 6.67% in the past month, lagging the Medical sector's gain of 0.12% and the S&P 500's loss of 0.2%.

The upcoming earnings release of Medtronic will be of great interest to investors. The company's earnings report is expected on November 18, 2025. The company is forecasted to report an EPS of $1.31, showcasing a 3.97% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $8.86 billion, showing a 5.44% escalation compared to the year-ago quarter.

MDT's full-year Zacks Consensus Estimates are calling for earnings of $5.62 per share and revenue of $35.83 billion. These results would represent year-over-year changes of +2.37% and +7.91%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Medtronic. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 past month, the Zacks Consensus EPS estimate has shifted 0.01% downward. Medtronic is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Medtronic is presently trading at a Forward P/E ratio of 16.04. This indicates a discount in contrast to its industry's Forward P/E of 18.18.

We can additionally observe that MDT currently boasts a PEG ratio of 2.37. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Medical - Products industry was having an average PEG ratio of 1.98.

The Medical - Products industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 161, positioning it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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