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Medical Properties (MPW) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
·3 min read

Medical Properties (MPW) closed the most recent trading day at $24.13, moving +1.64% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 4.81%.

Prior to today's trading, shares of the health care real estate investment trust had gained 8.35% over the past month. This has outpaced the Finance sector's gain of 5.21% and the S&P 500's gain of 0.64% in that time.

Investors will be hoping for strength from Medical Properties as it approaches its next earnings release. On that day, Medical Properties is projected to report earnings of $0.46 per share, which would represent year-over-year growth of 12.2%. Meanwhile, our latest consensus estimate is calling for revenue of $397.96 million, up 19.22% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for Medical Properties. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.39% lower. Medical Properties is currently a Zacks Rank #3 (Hold).

In terms of valuation, Medical Properties is currently trading at a Forward P/E ratio of 12.73. This represents a discount compared to its industry's average Forward P/E of 15.45.

It is also worth noting that MPW currently has a PEG ratio of 1.61. 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. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 2.75 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% 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.

To follow MPW in the coming trading sessions, be sure to utilize Zacks.com.


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Medical Properties Trust, Inc. (MPW) : Free Stock Analysis Report
 
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