Back to top

Image: Bigstock

Medical Properties (MPW) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Medical Properties (MPW - Free Report) closed the most recent trading day at $20.21, moving -1.41% from the previous trading session. This change lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, lost 0.18%.

Prior to today's trading, shares of the health care real estate investment trust had 0% over the past month. This has lagged the Finance sector's gain of 0.47% and the S&P 500's gain of 2.67% in that time.

Investors will be hoping for strength from Medical Properties as it approaches its next earnings release. The company is expected to report EPS of $0.47, up 11.9% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $408.56 million, up 12.62% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.86 per share and revenue of $1.64 billion. These totals would mark changes of +6.29% and +5.92%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Medical Properties. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.64% lower within the past month. Medical Properties is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Medical Properties is holding a Forward P/E ratio of 11.01. Its industry sports an average Forward P/E of 15.41, so we one might conclude that Medical Properties is trading at a discount comparatively.

It is also worth noting that MPW currently has a PEG ratio of 1.68. 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. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 2.79 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 112, putting it in the top 45% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Medical Properties Trust, Inc. (MPW) - free report >>

Published in