Medtronic (MDT) closed the most recent trading day at $84.85, moving +1.54% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 1.47% for the day. At the same time, the Dow added 1.39%, and the tech-heavy Nasdaq gained 1.51%.
Prior to today's trading, shares of the medical device company had lost 4.93% over the past month. This has lagged the Medical sector's loss of 2.95% and the S&P 500's loss of 0.47% in that time.
The upcoming earnings release of Medtronic will be of great interest to investors. The company's earnings report is expected on May 21, 2025. The company is predicted to post an EPS of $1.58, indicating an 8.22% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.81 billion, indicating a 2.57% increase compared to the same quarter of the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Medtronic. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Medtronic boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Medtronic currently has a Forward P/E ratio of 14.33. For comparison, its industry has an average Forward P/E of 15.71, which means Medtronic is trading at a discount to the group.
Also, we should mention that MDT has a PEG ratio of 1.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Medical - Products industry had an average PEG ratio of 1.97.
The Medical - Products industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 159, finds itself in the bottom 36% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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