Medtronic (MDT) closed at $99.36 in the latest trading session, marking a +2.92% move from the prior day. This move outpaced the S&P 500's daily loss of 0.51%. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq depreciated by 1.07%.
Shares of the medical device company witnessed a gain of 11.76% over the previous month, beating the performance of the Medical sector with its gain of 8.21%, and the S&P 500's loss of 0.87%.
Investors will be eagerly watching for the performance of Medtronic in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.34, signifying a 1.47% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $9.47 billion, showing a 5.66% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.98 per share and revenue of $38.97 billion, which would represent changes of +8.14% and +7.16%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Medtronic. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% decrease. Currently, Medtronic is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Medtronic is at present trading with a Forward P/E ratio of 16.15. This represents a discount compared to its industry average Forward P/E of 19.62.
It's also important to note that MDT currently trades at a PEG ratio of 2.26. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Products was holding an average PEG ratio of 1.99 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. With its current Zacks Industry Rank of 167, this industry ranks in the bottom 33% of all industries, numbering over 250.
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.
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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Medtronic PLC (MDT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
