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Medtronic (MDT) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Medtronic (MDT - Free Report) closed at $117.33, marking a +0.25% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.19%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 0.08%.

Coming into today, shares of the medical device company had gained 2.35% in the past month. In that same time, the Medical sector gained 1.85%, while the S&P 500 gained 3.72%.

Wall Street will be looking for positivity from MDT as it approaches its next earnings report date. The company is expected to report EPS of $1.38, up 6.98% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.82 billion, up 3.59% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.60 per share and revenue of $31.53 billion. These totals would mark changes of +7.28% and +3.17%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for MDT. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MDT is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that MDT has a Forward P/E ratio of 20.9 right now. This valuation marks a discount compared to its industry's average Forward P/E of 26.09.

Investors should also note that MDT has a PEG ratio of 2.84 right now. 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. MDT's industry had an average PEG ratio of 2.72 as of yesterday's close.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 113, putting it in the top 45% 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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