Medtronic (MDT) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, Medtronic (MDT) closed at $86.75, marking a -1% move from the previous day. This move lagged the S&P 500's daily loss of 0.32%. At the same time, the Dow lost 0.71%, and the tech-heavy Nasdaq lost 0.2%.
Prior to today's trading, shares of the medical device company had gained 3.62% over the past month. This has outpaced the Medical sector's gain of 2.33% and lagged the S&P 500's gain of 4.59% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Medtronic in its upcoming earnings disclosure. The company's earnings report is set to go public on February 20, 2024. It is anticipated that the company will report an EPS of $1.26, marking a 3.08% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.95 billion, up 2.91% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.16 per share and a revenue of $32.07 billion, representing changes of -2.46% and +2.71%, respectively, from the prior year.
Any recent changes to analyst estimates for Medtronic should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Medtronic is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Medtronic is presently being traded at a Forward P/E ratio of 16.97. For comparison, its industry has an average Forward P/E of 20.09, which means Medtronic is trading at a discount to the group.
One should further note that MDT currently holds a PEG ratio of 3.06. 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 2.47 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Medtronic PLC (MDT) : Free Stock Analysis Report
