Medical Properties (MPW) Stock Sinks As Market Gains: Here's Why
The latest trading session saw Medical Properties (MPW) ending at $4.70, denoting a -0.42% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.11%. Meanwhile, the Dow experienced a rise of 0.12%, and the technology-dominated Nasdaq saw a decrease of 0.12%.
Coming into today, shares of the health care real estate investment trust had gained 13.19% in the past month. In that same time, the Finance sector gained 4.21%, while the S&P 500 gained 3.55%.
The investment community will be closely monitoring the performance of Medical Properties in its forthcoming earnings report. In that report, analysts expect Medical Properties to post earnings of $0.25 per share. This would mark a year-over-year decline of 32.43%. Our most recent consensus estimate is calling for quarterly revenue of $287.04 million, down 18.04% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.19 per share and revenue of $1.23 billion, indicating changes of -25.16% and +41.47%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Medical Properties. 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 2.13% lower. As of now, Medical Properties holds a Zacks Rank of #4 (Sell).
Investors should also note Medical Properties's current valuation metrics, including its Forward P/E ratio of 3.97. This valuation marks a discount compared to its industry's average Forward P/E of 11.56.
We can additionally observe that MPW currently boasts a PEG ratio of 1.32. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the REIT and Equity Trust - Other industry stood at 2.3 at the close of the market yesterday.
The REIT and Equity Trust - Other industry is part of the Finance sector. With its current Zacks Industry Rank of 142, this industry ranks in the bottom 44% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Medical Properties Trust, Inc. (MPW) : Free Stock Analysis Report
