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Why Medical Properties (MPW) Outpaced the Stock Market Today

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The most recent trading session ended with Medical Properties (MPW - Free Report) standing at $3.23, reflecting a +1.89% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.23% gain on the day. Elsewhere, the Dow saw an upswing of 0.37%, while the tech-heavy Nasdaq appreciated by 0.07%.

Prior to today's trading, shares of the health care real estate investment trust had lost 6.49% over the past month. This has lagged the Finance sector's gain of 0.54% and the S&P 500's gain of 5.3% in that time.

The investment community will be closely monitoring the performance of Medical Properties in its forthcoming earnings report. The company is forecasted to report an EPS of $0.28, showcasing a 34.88% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $235.38 million, indicating a 38.14% downward movement from the same quarter last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Medical Properties. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 last 30 days, the Zacks Consensus EPS estimate has moved 10.39% lower. Medical Properties currently has a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Medical Properties has a Forward P/E ratio of 2.51 right now. This denotes a discount relative to the industry's average Forward P/E of 10.47.

It is also worth noting that MPW currently has a PEG ratio of 0.84. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. MPW's industry had an average PEG ratio of 2.45 as of yesterday's close.

The REIT and Equity Trust - Other industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 104, placing it within the top 42% of over 250 industries.

The Zacks Industry Rank is ordered 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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