Advertisement
UK markets closed
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • CRUDE OIL

    83.11
    +1.76 (+2.16%)
     
  • GOLD FUTURES

    2,254.80
    +42.10 (+1.90%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • Bitcoin GBP

    56,094.19
    +1,434.63 (+2.62%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • NASDAQ Composite

    16,379.46
    -20.06 (-0.12%)
     
  • UK FTSE All Share

    4,338.05
    +12.12 (+0.28%)
     

Medtronic (MDT) Dips More Than Broader Markets: What You Should Know

Medtronic (MDT) closed the most recent trading day at $118.37, moving -0.68% from the previous trading session. This change lagged the S&P 500's daily loss of 0.09%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, added 0.06%.

Coming into today, shares of the medical device company had gained 5.05% in the past month. In that same time, the Medical sector lost 1.26%, while the S&P 500 gained 1.26%.

Investors will be hoping for strength from MDT as it approaches its next earnings release, which is expected to be February 18, 2020. On that day, MDT is projected to report earnings of $1.38 per share, which would represent year-over-year growth of 6.98%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.82 billion, up 3.59% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.60 per share and revenue of $31.53 billion. These totals would mark changes of +7.28% and +3.17%, respectively, from last year.

ADVERTISEMENT

Investors should also note any recent changes to analyst estimates for MDT. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. MDT is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that MDT has a Forward P/E ratio of 21.28 right now. For comparison, its industry has an average Forward P/E of 27.21, which means MDT is trading at a discount to the group.

Meanwhile, MDT's PEG ratio is currently 2.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Products stocks are, on average, holding a PEG ratio of 2.55 based on yesterday's closing prices.

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 115, which puts it in the top 46% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Medtronic PLC (MDT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.