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The most recent trading session ended with Medtronic (MDT) standing at $80.74, reflecting a -1.05% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily loss of 1.11%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 1.49%.
The the stock of medical device company has fallen by 5.41% in the past month, lagging the Medical sector's loss of 4.56% and the S&P 500's gain of 0.4%.
The investment community will be closely monitoring the performance of Medtronic in its forthcoming earnings report. The company is predicted to post an EPS of $1.36, indicating a 4.62% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.33 billion, indicating a 2.95% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.45 per share and revenue of $33.56 billion, indicating changes of +4.81% and +3.69%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Medtronic. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. Medtronic is currently a Zacks Rank #3 (Hold).
In terms of valuation, Medtronic is presently being traded at a Forward P/E ratio of 14.96. This indicates a discount in contrast to its industry's Forward P/E of 24.68.
We can also see that MDT currently has a PEG ratio of 2.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Products industry had an average PEG ratio of 2.31 as trading concluded yesterday.
The Medical - Products industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 127, placing it within the top 50% of over 250 industries.