Medtronic (MDT) Stock Sinks As Market Gains: Here's Why

In the latest close session, Medtronic (MDT) was down 2.76% at $77.79. The stock fell short of the S&P 500, which registered a gain of 0.81% for the day. Meanwhile, the Dow experienced a rise of 0.73%, and the technology-dominated Nasdaq saw an increase of 1.03%. Heading into today, shares of the medical device company had lost 9.25% over the past month, lagging the Medical sector's loss of 0.96% and the S&P 500's gain of 9.47%.The upcoming earnings release of Medtronic will be of great interest to investors. The company's earnings report is expected on June 3, 2026. The company's earnings per share (EPS) are projected to be $1.58, reflecting a 2.47% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.66 billion, up 8.22% from the year-ago period. MDT's full-year Zacks Consensus Estimates are calling for earnings of $5.57 per share and revenue of $36.15 billion. These results would represent year-over-year changes of +1.46% and +7.78%, respectively. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Medtronic. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. Medtronic is holding a Zacks Rank of #4 (Sell) right now. From a valuation perspective, Medtronic is currently exchanging hands at a Forward P/E ratio of 12.87. This represents a discount compared to its industry average Forward P/E of 18.37. Meanwhile, MDT's PEG ratio is currently 1.86. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Medical - Products industry held an average PEG ratio of 1.65. The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 36% of all 250+ industries. The Zacks Industry Rank is ordered 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. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks