In the latest trading session, Medtronic (MDT - Free Report) closed at $106.93, marking a +0.93% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.8%. Elsewhere, the Dow gained 0.47%, while the tech-heavy Nasdaq added 1.12%.
Heading into today, shares of the medical device company had lost 1.6% over the past month, outpacing the Medical sector's loss of 3.82% and lagging the S&P 500's loss of 1.07% in that time.
Investors will be hoping for strength from MDT as it approaches its next earnings release. The company is expected to report EPS of $1.28, up 4.92% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.68 billion, up 2.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.56 per share and revenue of $31.50 billion, which would represent changes of +6.51% and +3.09%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for MDT. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 remained stagnant. MDT is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, MDT is currently trading at a Forward P/E ratio of 19.05. For comparison, its industry has an average Forward P/E of 25.27, which means MDT is trading at a discount to the group.
Also, we should mention that MDT has a PEG ratio of 2.6. 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 industry currently had an average PEG ratio of 2.44 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 32% 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.