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

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  • MDT

Medtronic (MDT) closed the most recent trading day at $121.27, moving -1% from the previous trading session. This change lagged the S&P 500's 0.98% gain on the day.

Heading into today, shares of the medical device company had lost 3.22% over the past month, lagging the Medical sector's loss of 1.47% and the S&P 500's gain of 2.57% in that time.

Wall Street will be looking for positivity from MDT as it approaches its next earnings report date. This is expected to be November 23, 2021. In that report, analysts expect MDT to post earnings of $1.29 per share. This would mark year-over-year growth of 26.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.98 billion, up 4.3% from the year-ago period.

Investors should also note any recent changes to analyst estimates for MDT. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

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. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. MDT currently has a Zacks Rank of #3 (Hold).

In terms of valuation, MDT is currently trading at a Forward P/E ratio of 21.5. This represents a discount compared to its industry's average Forward P/E of 26.

It is also worth noting that MDT currently has a PEG ratio of 2.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MDT's industry had an average PEG ratio of 2.13 as of yesterday's close.

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 43% 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.

To follow MDT in the coming trading sessions, be sure to utilize Zacks.com.


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