Medtronic (MDT) closed the most recent trading day at $87.97, moving +1.84% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.66%. Elsewhere, the Dow saw an upswing of 0.18%, while the tech-heavy Nasdaq appreciated by 1.05%.
Prior to today's trading, shares of the medical device company had lost 8.27% lagged the Medical sector's loss of 3.74% and the S&P 500's gain of 0.55%.
Market participants will be closely following the financial results of Medtronic in its upcoming release. The company's upcoming EPS is projected at $1.34, signifying a 1.47% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.47 billion, up 5.63% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.98 per share and revenue of $38.96 billion. These totals would mark changes of +8.14% and +7.14%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Medtronic. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, the Zacks Consensus EPS estimate has moved 0.35% higher. Currently, Medtronic is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Medtronic is at present trading with a Forward P/E ratio of 14.45. Its industry sports an average Forward P/E of 19.67, 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 1.97. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. MDT's industry had an average PEG ratio of 1.71 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 40% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).