Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Medical Properties (MPW - Free Report) closed at $14.32, marking a -1.45% move from the previous day. This move lagged the S&P 500's daily loss of 1.07%. Meanwhile, the Dow lost 1.07%, and the Nasdaq, a tech-heavy index, lost 0.07%.

Coming into today, shares of the health care real estate investment trust had lost 9.24% in the past month. In that same time, the Finance sector lost 2.83%, while the S&P 500 lost 3.49%.

Medical Properties will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.45, up 2.27% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $395.55 million, up 1.22% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.82 per share and revenue of $1.6 billion, which would represent changes of +4% and +3.59%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Medical Properties. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. Medical Properties is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Medical Properties's current valuation metrics, including its Forward P/E ratio of 7.99. This represents a discount compared to its industry's average Forward P/E of 12.97.

Also, we should mention that MPW has a PEG ratio of 1.44. 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. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 2.26 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% 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.

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