medical properties (MPW) was recently on Zacks.com’s list of most searched stocks. Therefore, we encourage you to consider some of the key factors that could affect the stock’s performance in the near future.
The healthcare real estate investment trust’s share price has returned -39.3% over the past month, compared to a -1.2% change for the Zachs S&P 500 Composite. During this period, Zacks REIT and Equity Trust-Medical Properties’ other industries fell 8.7% of him. The key issues here are: What is the future direction of stocks?
Media releases and rumors about significant changes in a company’s business prospects typically “trend” its stock, leading to immediate price movements, but ultimately several factors that govern buying and holding decisions. There are always basic facts.
Revision of earnings forecast
At Zacks, we prioritize assessing changes in a company’s revenue projections rather than focusing on other things. This is because we believe the fair value of a stock is determined by the present value of future earnings streams.
Essentially, we look at how sell-side analysts covering equities are revising their earnings forecasts to reflect the impact of the latest business trends. And if a company’s earnings expectations go up, so does its stock’s fair value. A higher fair value than the current market price will increase investor interest in buying the stock, leading to an increase in price. This is why empirical studies show a strong correlation between revision trends in earnings forecasts and short-term stock price movements.
Medical Properties is expected to post earnings of $0.40 per share in the quarter, representing a change of -14.9% from the same period last year. Zacks Consensus Estimate has changed by -9.7% over the last 30 days.
The consensus expected profit for the current fiscal year is $1.65, representing a -9.3% change from the previous year. Over the past 30 days, this estimate has changed by -6.1%.
The consensus expected profit for the next fiscal year is $1.63, representing a -1% change from what the medical property was expected to report a year ago. Estimates have changed by -7.1% over the past month.
With an impressive track record of external audits, our proprietary stock valuation tool, Zacks Rank, is a more definitive indicator of a stock’s short-term price performance as it effectively harnesses the power of revised earnings forecasts. The magnitude of the recent change in consensus forecasts, along with three other factors related to revenue forecasts, has put medical facility Zacks rank in his third place (hold).
The chart below shows the evolution of the company’s 12-month consensus EPS forecast.
12 months EPS
Expected revenue growth rate
Revenue growth is arguably the best indicator of a company’s financial health, but if a company can’t grow revenue, nothing happens. After all, it’s nearly impossible for a company to increase revenue over the long term without increasing revenue. Therefore, it is important to know the potential revenue growth rate of the company.
For medical properties, the current quarter’s consensus revenue forecast of $356.27 million represents a -13.1% year-over-year change. For the current and next fiscal years, the $1.47 billion and $1.48 billion estimates represent a -4.5% and +0.7% change, respectively.
Last Reported Results and Surprise History
Medical Properties reported revenue of $380.49 million in its last reported quarter, a year-on-year change of -7.1%. His EPS for the same period was -0.24 and a year ago he was $0.47.
Compared to the Zacks Consensus Estimate of $378.6 million, the reported revenue represents a surprise +0.5%. EPS Surprise was 0%.
In the last four quarters, we’ve beaten EPS estimates only once. The company has beaten consensus earnings estimates twice in this period.
You can’t make efficient investment decisions without considering stock valuations. Whether the current price of a stock correctly reflects the intrinsic value of the underlying business and the company’s growth prospects is a key determinant of future price performance.
The current value of a company’s valuation multiples, such as price-to-earnings ratio (P/E), price-to-sales (P/S), price-to-cash-flow (P/CF), Helps to see if it’s fair valued, overvalued or undervalued, but how reasonable its stock price is when comparing the company to its peers on these parameters is well understood.
The Zacks Value Style Score (part of the Zacks Style Scoring System) pays close attention to both traditional and unconventional metrics, rating stocks from A to F (An is better than B). , B is better than C, B is better than C, etc.), identifying whether a stock is overvalued, overvalued, or temporarily undervalued. very helpful to do.
Medical properties are rated B on this dimension, indicating that they are trading at a discount to their peers. Click here to see the values of some of the metrics that contributed to this grade.
The facts discussed here, as well as a lot of other information about Zacks.com, may help you decide whether the market buzz about medical properties is worth paying attention to. However, Zacks ranked No. 3 suggests it may perform in line with the broader market in the near future.
Want the latest recommendations from Zacks Investment Research? Download today the 7 Best Stocks of the Next 30 Days.Click to get this free report
Medical Properties Trust, Inc. (MPW) : Free Inventory Analysis Report
Click here to read this article on Zacks.com.
Zacks Investment Research