Medtronic (MDT) Gains As Market Dips: What You Should Know
Medtronic (MDT) closed the most recent trading day at $113.09, moving +0.08% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.48%. Meanwhile, the Dow lost 1.05%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Prior to today's trading, shares of the medical device company had gained 6.44% over the past month. This has outpaced the Medical sector's gain of 0.83% and the S&P 500's gain of 0.08% in that time.
Investors will be hoping for strength from Medtronic as it approaches its next earnings release. On that day, Medtronic is projected to report earnings of $1.57 per share, which would represent year-over-year growth of 4.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.44 billion, up 3.02% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Medtronic. 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 shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. Medtronic currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Medtronic currently has a Forward P/E ratio of 19.95. For comparison, its industry has an average Forward P/E of 23.08, which means Medtronic is trading at a discount to the group.
It is also worth noting that MDT currently has a PEG ratio of 2.64. 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 1.79 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 165, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MDT in the coming trading sessions, be sure to utilize Zacks.com.
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Medtronic PLC (MDT) : Free Stock Analysis Report
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