Back to top

Image: Bigstock

Medtronic (MDT) Dips More Than Broader Market: What You Should Know

Read MoreHide Full Article

Medtronic (MDT - Free Report) closed at $101.60 in the latest trading session, marking a -1.16% move from the prior day. This change lagged the S&P 500's 0.38% loss on the day. Elsewhere, the Dow saw a downswing of 0.3%, while the tech-heavy Nasdaq depreciated by 0.74%.

The medical device company's stock has climbed by 11.81% in the past month, exceeding the Medical sector's gain of 9.59% and the S&P 500's loss of 3.31%.

The investment community will be closely monitoring the performance of Medtronic in its forthcoming earnings report. The company is scheduled to release its earnings on November 24, 2026. On that day, Medtronic is projected to report earnings of $1.34 per share, which would represent a year-over-year decline of 1.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.47 billion, up 5.66% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.98 per share and revenue of $39.03 billion, which would represent changes of +8.14% and +7.34%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Medtronic. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. Currently, Medtronic is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, Medtronic is holding a Forward P/E ratio of 17.2. This valuation marks a discount compared to its industry average Forward P/E of 20.61.

Also, we should mention that MDT has a PEG ratio of 2.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Products was holding an average PEG ratio of 2.18 at yesterday's closing price.

The Medical - Products industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 149, placing it within the bottom 40% of over 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.

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

Published in