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The latest trading session saw Medtronic (MDT) ending at $80.95, denoting a +0.91% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 1.26%. Meanwhile, the Dow experienced a rise of 0.8%, and the technology-dominated Nasdaq saw an increase of 1.77%.
Coming into today, shares of the medical device company had lost 4.66% in the past month. In that same time, the Medical sector lost 6.56%, while the S&P 500 lost 2.82%.
The investment community will be paying close attention to the earnings performance of Medtronic in its upcoming release. It is anticipated that the company will report an EPS of $1.36, marking a 4.62% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $8.33 billion, up 2.95% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.45 per share and a revenue of $33.56 billion, representing changes of +4.81% and +3.69%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Medtronic. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Medtronic is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, Medtronic is holding a Forward P/E ratio of 14.71. This signifies a discount in comparison to the average Forward P/E of 18.68 for its industry.
It's also important to note that MDT currently trades at a PEG ratio of 2.27. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Medical - Products industry had an average PEG ratio of 2.19.
The Medical - Products industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 87, positioning it in the top 35% of all 250+ industries.