Medtronic (MDT) Stock Moves -0.39%: What You Should Know

Medtronic (MDT) closed the most recent trading day at $82.27, moving -0.39% from the previous trading session. This change was narrower than the S&P 500's daily loss of 2.11%. Elsewhere, the Dow lost 1.54%, while the tech-heavy Nasdaq lost 0.3%.

Prior to today's trading, shares of the medical device company had lost 6.06% over the past month. This has lagged the Medical sector's loss of 4.04% and was narrower than the S&P 500's loss of 8.19% in that time.

Medtronic will be looking to display strength as it nears its next earnings release. In that report, analysts expect Medtronic to post earnings of $1.28 per share. This would mark a year-over-year decline of 3.03%. Meanwhile, our latest consensus estimate is calling for revenue of $7.72 billion, down 1.58% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.53 per share and revenue of $31.56 billion, which would represent changes of -0.36% and -0.38%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Medtronic. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.13% lower. Medtronic is currently a Zacks Rank #4 (Sell).

In terms of valuation, Medtronic is currently trading at a Forward P/E ratio of 14.95. Its industry sports an average Forward P/E of 19.43, so we one might conclude that Medtronic is trading at a discount comparatively.

Meanwhile, MDT's PEG ratio is currently 2.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MDT's industry had an average PEG ratio of 2.12 as of yesterday's close.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 29% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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