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Medtronic (MDT) Advances But Underperforms Market: Key Facts

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The most recent trading session ended with Medtronic (MDT - Free Report) standing at $88.26, reflecting a +0.56% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.9%. Meanwhile, the Dow experienced a rise of 0.81%, and the technology-dominated Nasdaq saw an increase of 1.22%.

Shares of the medical device company have depreciated by 1.81% over the course of the past month, outperforming the Medical sector's loss of 4.05% and lagging the S&P 500's gain of 3.15%.

The upcoming earnings release of Medtronic will be of great interest to investors. On that day, Medtronic is projected to report earnings of $1.24 per share, which would represent a year-over-year decline of 0.8%. Meanwhile, the latest consensus estimate predicts the revenue to be $8.26 billion, indicating a 3.47% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.44 per share and revenue of $33.6 billion. These totals would mark changes of +4.62% and +3.81%, respectively, from last year.

Any recent changes to analyst estimates for Medtronic should also be noted by investors. Such recent modifications usually signify the changing landscape of near-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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.33% decrease. Medtronic presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Medtronic is holding a Forward P/E ratio of 16.14. This indicates a discount in contrast to its industry's Forward P/E of 24.09.

Investors should also note that MDT has a PEG ratio of 2.51 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Medical - Products industry held an average PEG ratio of 1.93.

The Medical - Products industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 49, finds itself in the top 20% echelons of all 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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