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

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Medtronic (MDT - Free Report) closed at $105.53 in the latest trading session, marking a -1.51% move from the prior day. This change lagged the S&P 500's 0.12% loss on the day. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.02%.

Coming into today, shares of the medical device company had lost 0.1% in the past month. In that same time, the Medical sector gained 5.24%, while the S&P 500 gained 4.42%.

Wall Street will be looking for positivity from MDT as it approaches its next earnings report date. This is expected to be November 19, 2019. 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.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.56 per share and revenue of $31.50 billion. These totals would mark changes of +6.51% and +3.09%, respectively, from last 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating 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 #3 (Hold).

In terms of valuation, MDT is currently trading at a Forward P/E ratio of 19.27. For comparison, its industry has an average Forward P/E of 24.94, which means MDT is trading at a discount to the group.

Also, we should mention that MDT has a PEG ratio of 2.63. 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 2.59 at yesterday's closing price.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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