Medtronic (MDT) closed at $92.32 in the latest trading session, marking a +0.68% move from the prior day. This move outpaced the S&P 500's daily gain of 0.5%. Elsewhere, the Dow lost 0.3%, while the tech-heavy Nasdaq added 0.95%.
Coming into today, shares of the medical device company had lost 5.71% in the past month. In that same time, the Medical sector lost 1.24%, while the S&P 500 gained 1.89%.
MDT will be looking to display strength as it nears its next earnings release. In that report, analysts expect MDT to post earnings of $0.26 per share. This would mark a year-over-year decline of 79.37%. Our most recent consensus estimate is calling for quarterly revenue of $5.38 billion, down 28.27% from the year-ago period.
MDT's full-year Zacks Consensus Estimates are calling for earnings of $3.51 per share and revenue of $27.45 billion. These results would represent year-over-year changes of -23.53% and -5.08%, respectively.
It is also important to note the recent changes to analyst estimates for MDT. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. MDT is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note MDT's current valuation metrics, including its Forward P/E ratio of 26.16. Its industry sports an average Forward P/E of 34.27, so we one might conclude that MDT is trading at a discount comparatively.
We can also see that MDT currently has a PEG ratio of 3.38. 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. The Medical - Products was holding an average PEG ratio of 4.17 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow MDT in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Medtronic PLC (MDT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research