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Medical Properties (MPW) Flat As Market Gains: What You Should Know

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Medical Properties (MPW - Free Report) closed the most recent trading day at $4.52, making no change from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.55% for the day. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.63%.

The health care real estate investment trust's shares have seen a decrease of 6.42% over the last month, not keeping up with the Finance sector's loss of 2.67% and the S&P 500's gain of 4.28%.

Analysts and investors alike will be keeping a close eye on the performance of Medical Properties in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.21, showcasing a 56.25% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $251.2 million, down 25.55% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $0.87 per share and a revenue of $1 billion, demonstrating changes of -45.28% and +14.98%, respectively, from the preceding year.

Any recent changes to analyst estimates for Medical Properties should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Medical Properties is currently sporting a Zacks Rank of #5 (Strong Sell).

Digging into valuation, Medical Properties currently has a Forward P/E ratio of 5.18. This valuation marks a discount compared to its industry's average Forward P/E of 12.23.

We can also see that MPW currently has a PEG ratio of 0.65. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the REIT and Equity Trust - Other industry had an average PEG ratio of 2.33.

The REIT and Equity Trust - Other industry is part of the Finance sector. With its current Zacks Industry Rank of 179, this industry ranks in the bottom 29% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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