The most recent trading session ended with Medtronic (MDT) standing at $84.30, reflecting a +0.66% shift from the previouse trading day's closing. This change lagged the S&P 500's 2.03% gain on the day. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 2.74%.
Shares of the medical device company have depreciated by 5.08% over the course of the past month, outperforming the Medical sector's loss of 8.57% and lagging the S&P 500's loss of 5.07%.
The investment community will be paying close attention to the earnings performance of Medtronic in its upcoming release. The company is slated to reveal its earnings on May 21, 2025. The company is expected to report EPS of $1.58, up 8.22% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $8.81 billion, indicating a 2.57% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.46 per share and revenue of $33.48 billion, which would represent changes of +5% and +3.44%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Medtronic. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Medtronic holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Medtronic has a Forward P/E ratio of 15.35 right now. For comparison, its industry has an average Forward P/E of 15.35, which means Medtronic is trading at no noticeable deviation to the group.
We can also see that MDT currently has a PEG ratio of 2.11. 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. The Medical - Products industry currently had an average PEG ratio of 2.08 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 171, positioning it in the bottom 32% 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.
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Medtronic PLC (MDT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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