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

Medtronic (MDT) closed at $105.21 in the latest trading session, marking a -0.01% move from the prior day. This move lagged the S&P 500's daily gain of 0.19%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq gained 0.81%.

Prior to today's trading, shares of the medical device company had lost 2.23% over the past month. This has lagged the Medical sector's loss of 1.57% and the S&P 500's gain of 0.56% in that time.

MDT will be looking to display strength as it nears its next earnings release. In that report, analysts expect MDT to post earnings of $1.28 per share. This would mark year-over-year growth of 4.92%. Our most recent consensus estimate is calling for quarterly revenue of $7.67 billion, up 2.5% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.56 per share and revenue of $31.50 billion. These totals would mark changes of +6.51% and +3.09%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for MDT. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. MDT is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, MDT is holding a Forward P/E ratio of 18.92. This valuation marks a discount compared to its industry's average Forward P/E of 25.63.

We can also see that MDT currently has a PEG ratio of 2.59. 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. MDT's industry had an average PEG ratio of 2.58 as of yesterday's close.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.