U.S. markets closed

Medtronic (MDT) Gains As Market Dips: What You Should Know

Zacks Equity Research

Medtronic (MDT) closed the most recent trading day at $86.26, moving +0.13% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.51%. At the same time, the Dow lost 1.69%, and the tech-heavy Nasdaq lost 1.53%.

Heading into today, shares of the medical device company had lost 14.01% over the past month, lagging the Medical sector's loss of 10.33% and outpacing the S&P 500's loss of 18.13% in that time.

Wall Street will be looking for positivity from MDT as it approaches its next earnings report date. In that report, analysts expect MDT to post earnings of $1.46 per share. This would mark a year-over-year decline of 5.19%. Meanwhile, our latest consensus estimate is calling for revenue of $8.06 billion, down 1.07% from the prior-year quarter.

MDT's full-year Zacks Consensus Estimates are calling for earnings of $5.49 per share and revenue of $30.89 billion. These results would represent year-over-year changes of +5.17% and +1.07%, respectively.

Investors should also note any recent changes to analyst estimates for MDT. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 has moved 2.66% lower. MDT is currently a Zacks Rank #3 (Hold).

Investors should also note MDT's current valuation metrics, including its Forward P/E ratio of 15.71. Its industry sports an average Forward P/E of 23.85, so we one might conclude that MDT is trading at a discount comparatively.

We can also see that MDT currently has a PEG ratio of 2.22. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Products stocks are, on average, holding a PEG ratio of 2.46 based on yesterday's closing prices.

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Medtronic PLC (MDT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.