Medtronic (MDT) ended the recent trading session at $92.77, demonstrating a -2.09% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.41% for the day. On the other hand, the Dow registered a loss of 0.07%, and the technology-centric Nasdaq increased by 1.11%.
Heading into today, shares of the medical device company had gained 2.84% over the past month, outpacing the Medical sector's gain of 1.97% and the S&P 500's gain of 1.46%.
Market participants will be closely following the financial results of Medtronic in its upcoming release. In that report, analysts expect Medtronic to post earnings of $1.34 per share. This would mark a year-over-year decline of 1.47%. Our most recent consensus estimate is calling for quarterly revenue of $9.47 billion, up 5.66% from the year-ago period.
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 might also notice recent changes to analyst estimates for Medtronic. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, there's been a 0.15% rise in the Zacks Consensus EPS estimate. Medtronic is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Medtronic is currently exchanging hands at a Forward P/E ratio of 15.85. For comparison, its industry has an average Forward P/E of 20.56, which means Medtronic is trading at a discount to the group.
Also, we should mention that MDT has a PEG ratio of 2.16. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MDT's industry had an average PEG ratio of 1.89 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. With its current Zacks Industry Rank of 96, this industry ranks in the top 40% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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