Medifast (MED) closed at $127.67 in the latest trading session, marking a -1.08% move from the prior day. This change lagged the S&P 500's daily gain of 0.36%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.34%.
Heading into today, shares of the weight-loss company had gained 0.28% over the past month, lagging the Consumer Staples sector's gain of 4.04% and the S&P 500's gain of 0.64% in that time.
Wall Street will be looking for positivity from MED as it approaches its next earnings report date. On that day, MED is projected to report earnings of $1.52 per share, which would represent year-over-year growth of 50.5%. Our most recent consensus estimate is calling for quarterly revenue of $151.70 million, up 53.85% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.52 per share and revenue of $709.20 million. These totals would mark changes of +41.13% and +41.56%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for MED. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 11.45% higher within the past month. MED is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note MED's current valuation metrics, including its Forward P/E ratio of 19.79. This valuation marks a premium compared to its industry's average Forward P/E of 18.12.
It is also worth noting that MED currently has a PEG ratio of 0.99. 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. The Food - Miscellaneous industry currently had an average PEG ratio of 2.28 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 40% 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 MED in the coming trading sessions, be sure to utilize Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.