Here's Why Medical Properties (MPW) Gained But Lagged the Market Today
Medical Properties (MPW) ended the recent trading session at $5.72, demonstrating a +0.7% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.9%. At the same time, the Dow added 0.81%, and the tech-heavy Nasdaq gained 1.22%.
Heading into today, shares of the health care real estate investment trust had gained 16.16% over the past month, outpacing the Finance sector's gain of 0.34% and the S&P 500's gain of 3.15% in that time.
Investors will be eagerly watching for the performance of Medical Properties in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.20, marking a 47.37% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $241.18 million, down 21.33% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.85 per share and revenue of $1.01 billion. These totals would mark changes of -46.54% and +15.8%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Medical Properties. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 5.83% decrease. As of now, Medical Properties holds a Zacks Rank of #3 (Hold).
Investors should also note Medical Properties's current valuation metrics, including its Forward P/E ratio of 6.7. For comparison, its industry has an average Forward P/E of 12.56, which means Medical Properties is trading at a discount to the group.
Also, we should mention that MPW has a PEG ratio of 0.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. MPW's industry had an average PEG ratio of 2.44 as of yesterday's close.
The REIT and Equity Trust - Other industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 83, positioning it in the top 33% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Medical Properties Trust, Inc. (MPW) : Free Stock Analysis Report