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Medtronic (MDT) Gains But Lags Market: What You Should Know

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Medtronic (MDT - Free Report) closed at $103.91 in the latest trading session, marking a +1.56% move from the prior day. This move lagged the S&P 500's daily gain of 1.58%. Meanwhile, the Dow gained 1.22%, and the Nasdaq, a tech-heavy index, added 0.46%.

Coming into today, shares of the medical device company had lost 5.75% in the past month. In that same time, the Medical sector lost 4.03%, while the S&P 500 lost 5.54%.

Wall Street will be looking for positivity from Medtronic as it approaches its next earnings report date. This is expected to be February 22, 2022. In that report, analysts expect Medtronic to post earnings of $1.37 per share. This would mark year-over-year growth of 6.2%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.94 billion, up 2.16% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Medtronic. 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.

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.

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. Within the past 30 days, our consensus EPS projection has moved 0.13% lower. Medtronic is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, Medtronic is holding a Forward P/E ratio of 17.99. This valuation marks a discount compared to its industry's average Forward P/E of 22.48.

It is also worth noting that MDT currently has a PEG ratio of 2.67. 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 1.73 as of yesterday's close.

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 37% 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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