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Medtronic (MDT) Outpaces Stock Market Gains: What You Should Know

Zacks

Medtronic (MDT) closed the most recent trading day at $98.75, moving +1.25% from the previous trading session. The stock outpaced the S&P 500′s daily gain of 1.09%. Meanwhile, the Dow gained 1.13%, and the Nasdaq, a tech-heavy index, added 1.51%.

Heading into today, shares of the medical device company had gained 6.53% over the past month, outpacing the Medical sector’s gain of 4.8% and the S&P 500′s gain of 1.92% in that time.

Investors will be hoping for strength from MDT as it approaches its next earnings release, which is expected to be February 19, 2019. On that day, MDT is projected to report earnings of $1.24 per share, which would represent year-over-year growth of 5.98%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.57 billion, up 2.67% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.13 per share and revenue of $30.55 billion, which would represent changes of +7.55% and +1.98%, respectively, from the prior year.


Investors should also note any recent changes to analyst estimates for MDT. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% higher. MDT is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, MDT currently has a Forward P/E ratio of 19.02. This represents a discount compared to its industry’s average Forward P/E of 25.53.

We can also see that MDT currently has a PEG ratio of 2.54. 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 2.37 based on yesterday’s closing prices.

The Medical – Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 90, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.


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