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Here's Why Medtronic (MDT) Fell More Than Broader Market
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Medtronic (MDT - Free Report) closed at $89.30 in the latest trading session, marking a -1.62% move from the prior day. This move lagged the S&P 500's daily loss of 0.76%. On the other hand, the Dow registered a loss of 0.68%, and the technology-centric Nasdaq decreased by 1.13%.
The medical device company's stock has dropped by 0.41% in the past month, exceeding the Medical sector's loss of 3.03% and lagging the S&P 500's gain of 1.26%.
Analysts and investors alike will be keeping a close eye on the performance of Medtronic in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.34, signifying a 1.47% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $9.47 billion, reflecting a 5.63% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $5.97 per share and a revenue of $38.84 billion, demonstrating changes of +7.96% and +6.82%, respectively, from the preceding 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.45% higher. Medtronic presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Medtronic is currently trading at a Forward P/E ratio of 15.2. This denotes a discount relative to the industry average Forward P/E of 20.16.
Investors should also note that MDT has a PEG ratio of 2.07 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Medical - Products industry stood at 1.76 at the close of the market yesterday.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 40% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Here's Why Medtronic (MDT) Fell More Than Broader Market
Medtronic (MDT - Free Report) closed at $89.30 in the latest trading session, marking a -1.62% move from the prior day. This move lagged the S&P 500's daily loss of 0.76%. On the other hand, the Dow registered a loss of 0.68%, and the technology-centric Nasdaq decreased by 1.13%.
The medical device company's stock has dropped by 0.41% in the past month, exceeding the Medical sector's loss of 3.03% and lagging the S&P 500's gain of 1.26%.
Analysts and investors alike will be keeping a close eye on the performance of Medtronic in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.34, signifying a 1.47% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $9.47 billion, reflecting a 5.63% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $5.97 per share and a revenue of $38.84 billion, demonstrating changes of +7.96% and +6.82%, respectively, from the preceding 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.45% higher. Medtronic presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Medtronic is currently trading at a Forward P/E ratio of 15.2. This denotes a discount relative to the industry average Forward P/E of 20.16.
Investors should also note that MDT has a PEG ratio of 2.07 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Medical - Products industry stood at 1.76 at the close of the market yesterday.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 40% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.