Medtronic (MDT) Dips More Than Broader Markets: What You Should Know

Medtronic (MDT) closed the most recent trading day at $102.75, moving -0.79% from the previous trading session. This change lagged the S&P 500's daily loss of 0.58%. Meanwhile, the Dow lost 0.75%, and the Nasdaq, a tech-heavy index, added 0.56%.

Prior to today's trading, shares of the medical device company had lost 8.35% over the past month. This has was narrower than the Medical sector's loss of 8.39% and the S&P 500's loss of 10.53% in that time.

Medtronic will be looking to display strength as it nears its next earnings release, which is expected to be May 26, 2022. In that report, analysts expect Medtronic to post earnings of $1.57 per share. This would mark year-over-year growth of 4.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.44 billion, up 3.02% from the year-ago period.

Any recent changes to analyst estimates for Medtronic should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Medtronic currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Medtronic currently has a Forward P/E ratio of 17.83. For comparison, its industry has an average Forward P/E of 21.73, which means Medtronic is trading at a discount to the group.

We can also see that MDT currently has a PEG ratio of 2.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical - Products stocks are, on average, holding a PEG ratio of 1.57 based on yesterday's closing prices.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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