Medtronic (MDT) closed at $113.88 in the latest trading session, marking a -0.59% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.71%. Elsewhere, the Dow lost 0.81%, while the tech-heavy Nasdaq lost 0.79%.
Prior to today's trading, shares of the medical device company had gained 2.1% over the past month. This has lagged the Medical sector's gain of 4.11% and the S&P 500's gain of 4.77% in that time.
Investors will be hoping for strength from MDT as it approaches its next earnings release. The company is expected to report EPS of $1.39, up 7.75% from the prior-year quarter. 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.
Investors should also note any recent changes to analyst estimates for MDT. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. MDT currently has a Zacks Rank of #2 (Buy).
In terms of valuation, MDT is currently trading at a Forward P/E ratio of 20.45. This valuation marks a discount compared to its industry's average Forward P/E of 24.08.
Investors should also note that MDT has a PEG ratio of 2.78 right now. 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. MDT's industry had an average PEG ratio of 2.58 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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Medtronic PLC (MDT) : Free Stock Analysis Report
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