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

In the latest close session, Medtronic (MDT) was up +1.21% at $84.22. The stock's change was more than the S&P 500's daily gain of 0.02%. Meanwhile, the Dow experienced a rise of 0.51%, and the technology-dominated Nasdaq saw a decrease of 0.18%.

The medical device company's stock has climbed by 2.75% in the past month, falling short of the Medical sector's gain of 3.09% and outpacing the S&P 500's gain of 0.77%.

The investment community will be closely monitoring the performance of Medtronic in its forthcoming earnings report. The company is scheduled to release its earnings on September 1, 2026. The company's earnings per share (EPS) are projected to be $1.39, reflecting a 10.32% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $9.48 billion, up 10.53% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.94 per share and a revenue of $38.66 billion, indicating changes of +7.41% and +6.33%, respectively, from the former year.

Any recent changes to analyst estimates for Medtronic should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, there's been a 0.03% rise in the Zacks Consensus EPS estimate. Medtronic is currently a Zacks Rank #4 (Sell).

In terms of valuation, Medtronic is presently being traded at a Forward P/E ratio of 14. This indicates a discount in contrast to its industry's Forward P/E of 19.1.

Meanwhile, MDT's PEG ratio is currently 2.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Medical - Products industry stood at 1.75 at the close of the market yesterday.

The Medical - Products industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 159, positioning it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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

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This article originally published on Zacks Investment Research (zacks.com).

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