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

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Medtronic (MDT) closed at $112.33 in the latest trading session, marking a +0.55% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.43%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq lost 0.01%.

Coming into today, shares of the medical device company had gained 7.86% in the past month. In that same time, the Medical sector gained 6.01%, while the S&P 500 gained 3.69%.

Investors will be hoping for strength from Medtronic as it approaches 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.

Investors might also notice recent changes to analyst estimates for Medtronic. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 remained stagnant. Medtronic is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Medtronic currently has a Forward P/E ratio of 19.7. For comparison, its industry has an average Forward P/E of 23.05, which means Medtronic is trading at a discount to the group.

It is also worth noting that MDT currently has a PEG ratio of 2.61. 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. MDT's industry had an average PEG ratio of 1.8 as of yesterday's close.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 40% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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