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

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Medtronic (MDT) closed at $91.90 in the latest trading session, marking a +1.27% move from the prior day. This change outpaced the S&P 500's 1.15% loss on the day. At the same time, the Dow lost 0.71%, and the tech-heavy Nasdaq lost 0.13%.

Prior to today's trading, shares of the medical device company had gained 0.31% over the past month. This has outpaced the Medical sector's loss of 0.6% and lagged the S&P 500's gain of 1.44% in that time.

Wall Street will be looking for positivity from Medtronic as it approaches its next earnings report date. This is expected to be August 23, 2022. The company is expected to report EPS of $1.12, down 20.57% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.32 billion, down 8.29% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.56 per share and revenue of $32.02 billion, which would represent changes of +0.18% and +1.06%, respectively, from the prior year.

Investors should also note any 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. 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. The Zacks Consensus EPS estimate has moved 0.08% lower within the past month. Medtronic is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Medtronic's current valuation metrics, including its Forward P/E ratio of 16.33. For comparison, its industry has an average Forward P/E of 21.64, which means Medtronic is trading at a discount to the group.

Meanwhile, MDT's PEG ratio is currently 2.32. 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. Medical - Products stocks are, on average, holding a PEG ratio of 1.83 based on yesterday's closing prices.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% 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.

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

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