Medtronic (MDT) Gains As Market Dips: What You Should Know

In the latest trading session, Medtronic (MDT) closed at $90.42, marking a +1.37% move from the previous day. This change outpaced the S&P 500's 0.07% loss on the day. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.02%.

Heading into today, shares of the medical device company had lost 10.93% over the past month, lagging the Medical sector's loss of 5.47% and the S&P 500's loss of 7.99% in that time.

Investors will be hoping for strength from Medtronic as it approaches its next earnings release. On that day, Medtronic is projected to report earnings of $1.12 per share, which would represent a year-over-year decline of 20.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.34 billion, down 8.05% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.56 per share and revenue of $32.06 billion, which would represent changes of +0.18% and +1.19%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Medtronic. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. Medtronic is currently a Zacks Rank #4 (Sell).

Investors should also note Medtronic's current valuation metrics, including its Forward P/E ratio of 16.03. This represents a discount compared to its industry's average Forward P/E of 20.96.

We can also see that MDT currently has a PEG ratio of 2.28. 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 industry currently had an average PEG ratio of 1.45 as of yesterday's close.

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Medtronic PLC (MDT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.