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Medical Properties (MPW) Surpasses Market Returns: Some Facts Worth Knowing

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Medical Properties (MPW - Free Report) closed the latest trading day at $4.50, indicating a +1.58% change from the previous session's end. This move outpaced the S&P 500's daily gain of 1.01%. Meanwhile, the Dow experienced a rise of 0.55%, and the technology-dominated Nasdaq saw an increase of 1.13%.

Shares of the health care real estate investment trust witnessed a loss of 4.32% over the previous month, trailing the performance of the Finance sector with its gain of 3.02% and the S&P 500's gain of 2.5%.

Investors will be eagerly watching for the performance of Medical Properties in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.22, indicating a 42.11% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $248.03 million, indicating a 19.1% downward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.90 per share and a revenue of $1.03 billion, signifying shifts of -43.4% and +18.7%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Medical Properties. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 5.85% upward. Right now, Medical Properties possesses a Zacks Rank of #1 (Strong Buy).

Investors should also note Medical Properties's current valuation metrics, including its Forward P/E ratio of 4.9. For comparison, its industry has an average Forward P/E of 12.6, which means Medical Properties is trading at a discount to the group.

It's also important to note that MPW currently trades at a PEG ratio of 0.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The REIT and Equity Trust - Other was holding an average PEG ratio of 2.34 at yesterday's closing price.

The REIT and Equity Trust - Other industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 79, placing it within the top 32% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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