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Medtronic (MDT) Outpaces Stock Market Gains: What You Should Know

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Medtronic (MDT) closed at $112.52 in the latest trading session, marking a +1.42% move from the prior day. This change outpaced the S&P 500's 0.34% gain on the day. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, lost 0.47%.

Coming into today, shares of the medical device company had gained 3.07% in the past month. In that same time, the Medical sector gained 4.57%, while the S&P 500 gained 3.75%.

Medtronic will be looking to display strength as it nears its next earnings release. In that report, analysts expect Medtronic to post earnings of $1.57 per share. This would mark year-over-year growth of 4.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.44 billion, up 3.13% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Medtronic. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Medtronic is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Medtronic currently has a Forward P/E ratio of 19.56. For comparison, its industry has an average Forward P/E of 25.09, which means Medtronic is trading at a discount to the group.

Also, we should mention that MDT has a PEG ratio of 2.59. 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 Medical - Products was holding an average PEG ratio of 1.84 at yesterday's closing price.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 37% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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