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Medtronic (MDT) Stock Moves 0.68%: What You Should Know

Zacks Equity Research

Medtronic (MDT) closed at $113.35 in the latest trading session, marking a +0.68% move from the prior day. This change outpaced the S&P 500's 0% on the day. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq lost 0.18%.

Coming into today, shares of the medical device company had gained 0.1% in the past month. In that same time, the Medical sector gained 4.21%, while the S&P 500 gained 3.37%.

Wall Street will be looking for positivity from MDT as it approaches its next earnings report date. On that day, MDT is projected to report earnings of $1.39 per share, which would represent year-over-year growth of 7.75%. Our most recent consensus estimate is calling for quarterly revenue of $7.82 billion, up 3.59% from the year-ago period.

MDT's full-year Zacks Consensus Estimates are calling for earnings of $5.60 per share and revenue of $31.52 billion. These results would represent year-over-year changes of +7.28% and +3.15%, respectively.

It is also important to note the recent changes to analyst estimates for MDT. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MDT is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, MDT is holding a Forward P/E ratio of 20.1. Its industry sports an average Forward P/E of 26.77, so we one might conclude that MDT is trading at a discount comparatively.

Meanwhile, MDT's PEG ratio is currently 2.73. 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. The Medical - Products was holding an average PEG ratio of 2.71 at yesterday's closing price.

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 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.

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

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