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Medical Properties (MPW) Increases Yet Falls Behind Market: What Investors Need to Know

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Medical Properties (MPW - Free Report) closed at $4.26 in the latest trading session, marking a +0.24% move from the prior day. This move lagged the S&P 500's daily gain of 0.32%. Meanwhile, the Dow experienced a rise of 0.68%, and the technology-dominated Nasdaq saw an increase of 0.2%.

Coming into today, shares of the health care real estate investment trust had gained 11.84% in the past month. In that same time, the Finance sector gained 4.23%, while the S&P 500 gained 5.11%.

Investors will be eagerly watching for the performance of Medical Properties in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.25, showcasing a 32.43% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $287.04 million, indicating a 18.04% decrease compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.19 per share and revenue of $1.23 billion. These totals would mark changes of -25.16% and +41.47%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Medical Properties. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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 5.68% lower within the past month. Medical Properties is currently a Zacks Rank #4 (Sell).

From a valuation perspective, Medical Properties is currently exchanging hands at a Forward P/E ratio of 3.57. This denotes a discount relative to the industry's average Forward P/E of 11.53.

Meanwhile, MPW's PEG ratio is currently 1.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The REIT and Equity Trust - Other industry currently had an average PEG ratio of 2.33 as of yesterday's close.

The REIT and Equity Trust - Other industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 135, positioning it in the bottom 47% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.


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