Zacks Equity Research
3 min read
Medtronic (MDT) closed at $89.30 in the latest trading session, marking a -1.62% move from the prior day. This move lagged the S&P 500’s daily loss of 0.76%. On the other hand, the Dow registered a loss of 0.68%, and the technology-centric Nasdaq decreased by 1.13%.
The medical device company’s stock has dropped by 0.41% in the past month, exceeding the Medical sector’s loss of 3.03% and lagging the S&P 500’s gain of 1.26%.
Analysts and investors alike will be keeping a close eye on the performance of Medtronic in its upcoming earnings disclosure. The company’s upcoming EPS is projected at $1.34, signifying a 1.47% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $9.47 billion, reflecting a 5.63% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $5.97 per share and a revenue of $38.84 billion, demonstrating changes of +7.96% and +6.82%, respectively, from the preceding year.
Any recent changes to analyst estimates for Medtronic should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.45% higher. Medtronic presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Medtronic is currently trading at a Forward P/E ratio of 15.2. This denotes a discount relative to the industry average Forward P/E of 20.16.
Investors should also note that MDT has a PEG ratio of 2.07 right now. 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 average PEG ratio for the Medical – Products industry stood at 1.76 at the close of the market yesterday.
The Medical – Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 40% of all 250+ industries.
