Medtronic (MDT) Stock Sinks As Market Gains: What You Should Know

Medtronic (MDT) ended the recent trading session at $78.23, demonstrating a -3.34% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.79%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 1.52%.

Shares of the medical device company witnessed a gain of 9.39% over the previous month, beating the performance of the Medical sector with its gain of 7.53%, and the S&P 500's loss of 1.82%.

Analysts and investors alike will be keeping a close eye on the performance of Medtronic in its upcoming earnings disclosure. On that day, Medtronic is projected to report earnings of $1.39 per share, which would represent year-over-year growth of 10.32%. Simultaneously, our latest consensus estimate expects the revenue to be $9.48 billion, showing a 10.53% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.94 per share and a revenue of $38.66 billion, representing changes of +7.41% and +6.33%, respectively, from the prior year.

Any recent changes to analyst estimates for Medtronic should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.22% decrease. Medtronic is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Medtronic has a Forward P/E ratio of 13.62 right now. Its industry sports an average Forward P/E of 18.39, so one might conclude that Medtronic is trading at a discount comparatively.

It is also worth noting that MDT currently has a PEG ratio of 2.17. 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. As the market closed yesterday, the Medical - Products industry was having an average PEG ratio of 1.65.

Story Continues

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 27% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research