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

Medtronic (MDT) closed at $121.18 in the latest trading session, marking a -0.1% move from the prior day.

This story originally appeared on Zacks

Medtronic (MDT) closed at $121.18 in the latest trading session, marking a -0.1% move from the prior day. This change lagged the S&P 500's 0.65% gain on the day.

- Zacks

Coming into today, shares of the medical device company had lost 3.58% in the past month. In that same time, the Medical sector gained 4.93%, while the S&P 500 gained 6.38%.

MDT will be looking to display strength as it nears its next earnings release, which is expected to be November 23, 2021. On that day, MDT is projected to report earnings of $1.29 per share, which would represent year-over-year growth of 26.47%. Our most recent consensus estimate is calling for quarterly revenue of $7.98 billion, up 4.3% from the year-ago period.

Any recent changes to analyst estimates for MDT should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. MDT is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that MDT has a Forward P/E ratio of 21.29 right now. This represents a discount compared to its industry's average Forward P/E of 26.04.

Investors should also note that MDT has a PEG ratio of 2.42 right now. 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 2.13 as of yesterday's close.

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 41% 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 MDT in the coming trading sessions, be sure to utilize

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