Medtronic (MDT) ended the recent trading session at $97.11, demonstrating a +2.46% change from the preceding day's closing price. This change outpaced the S&P 500's 0.31% loss on the day. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 1.38%.
Prior to today's trading, shares of the medical device company had gained 9.84% outpaced the Medical sector's gain of 2.58% and the S&P 500's gain of 0.87%.
The upcoming earnings release of Medtronic will be of great interest to investors. On that day, Medtronic is projected to report earnings of $1.34 per share, which would represent a year-over-year decline of 1.47%. Meanwhile, the latest consensus estimate predicts the revenue to be $9.47 billion, indicating a 5.66% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.98 per share and revenue of $38.97 billion, indicating changes of +8.14% and +7.16%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Medtronic. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.04% fall in the Zacks Consensus EPS estimate. Medtronic currently has a Zacks Rank of #3 (Hold).
Investors should also note Medtronic's current valuation metrics, including its Forward P/E ratio of 15.86. This indicates a discount in contrast to its industry's Forward P/E of 20.65.
It is also worth noting that MDT currently has a PEG ratio of 2.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Products industry currently had an average PEG ratio of 2 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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Medtronic PLC (MDT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
