Medtronic (MDT) closed at $83.62 in the latest trading session, marking a +0.55% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.58%. Meanwhile, the Dow gained 0.62%, and the Nasdaq, a tech-heavy index, added 1.07%.
Shares of the medical device company witnessed a loss of 2.49% over the previous month, trailing the performance of the Medical sector with its gain of 2.77% and the S&P 500's gain of 11.33%.
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. In that report, analysts expect Medtronic to post earnings of $1.58 per share. This would mark year-over-year growth of 8.22%. Meanwhile, our latest consensus estimate is calling for revenue of $8.81 billion, up 2.57% from the prior-year quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Medtronic. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Medtronic is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Medtronic is presently trading at a Forward P/E ratio of 14.26. Its industry sports an average Forward P/E of 16.35, so one might conclude that Medtronic is trading at a discount comparatively.
Also, we should mention that MDT has a PEG ratio of 1.96. 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. The Medical - Products was holding an average PEG ratio of 2.14 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. With its current Zacks Industry Rank of 169, this industry ranks in the bottom 32% of all industries, numbering over 250.
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.
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Medtronic PLC (MDT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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