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

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In the latest trading session, Medtronic (MDT) closed at $89.23, marking a -1.22% move from the previous day. This change lagged the S&P 500's daily gain of 0.59%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.07%.

Heading into today, shares of the medical device company had gained 1.83% over the past month, lagging the Medical sector's gain of 8.26% and the S&P 500's gain of 7.25% in that time.

Investors will be hoping for strength from Medtronic as it approaches its next earnings release, which is expected to be August 23, 2022. The company is expected to report EPS of $1.12, down 20.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.33 billion, down 8.17% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.56 per share and revenue of $32.06 billion. These totals would mark changes of +0.18% and +1.19%, respectively, from last year.

Any recent changes to analyst estimates for Medtronic should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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.

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 holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, Medtronic currently has a Forward P/E ratio of 16.24. For comparison, its industry has an average Forward P/E of 21.4, which means Medtronic is trading at a discount to the group.

It is also worth noting that MDT currently has a PEG ratio of 2.31. 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. The Medical - Products industry currently had an average PEG ratio of 1.79 as of yesterday's close.

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 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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