Medifast (MED) closed at $204.93 in the latest trading session, marking a -0.77% move from the prior day. This change was narrower than the S&P 500's 1.73% loss on the day. At the same time, the Dow lost 1.19%, and the tech-heavy Nasdaq lost 2.07%.
Heading into today, shares of the weight-loss company had lost 6.13% over the past month, lagging the Consumer Staples sector's loss of 2.05% and outpacing the S&P 500's loss of 7.09% in that time.
MED will be looking to display strength as it nears its next earnings release, which is expected to be November 6, 2018. In that report, analysts expect MED to post earnings of $1.15 per share. This would mark year-over-year growth of 109.09%. Meanwhile, our latest consensus estimate is calling for revenue of $125.40 million, up 62.41% from the prior-year quarter.
MED's full-year Zacks Consensus Estimates are calling for earnings of $4.50 per share and revenue of $470.20 million. These results would represent year-over-year changes of +96.51% and +55.92%, respectively.
Investors might also notice recent changes to analyst estimates for MED. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. MED currently has a Zacks Rank of #3 (Hold).
Digging into valuation, MED currently has a Forward P/E ratio of 45.89. For comparison, its industry has an average Forward P/E of 17.3, which means MED is trading at a premium to the group.
Also, we should mention that MED has a PEG ratio of 2.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Food - Miscellaneous was holding an average PEG ratio of 2.03 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 190, which puts it in the bottom 25% 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.
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