Valuing 2 Stocks Using Ratios and Multiples: Amcor plc (AMCR), Medtronic plc (MDT)

You should consider shares of Amcor plc (NYSE:AMCR) and Medtronic plc (NYSE:MDT) if you are looking for a great stocks to invest in. Starting with the AMCR shares, which traded at $10.67 at the close of the recent session, gaining 0.47%. On Wednesday, the company’s shares shed $0.05 from its value which represented in intraday trading. The stock is now -1.57% lower in year-to-date (YTD) trading. AMCR’s intraday high was $10.84 while its lowest price touched $10.64. The stock’s 52-week high price is $11.77, which means the current price is at -9.35%. In terms of trading activity, the daily trading volume fell to 3814322 against 200-day average trading volume of 6,129,140 shares.

What are analyst forecasts for Amcor plc (NYSE:AMCR)?

At a consensus rating of 3.33, AMCR is trending as a streaking Hold, as it has been the case a month ago when 5 analysts called it a Hold. Two months ago, 5 analysts recommended, on average, that AMCR stock is a Hold. The Consumer Goods company’s shares’ overall bullish trend saw it close lower on Wednesday compared to its opening price of $10.82 on the day.

Forecasts for Amcor plc (NYSE:AMCR) give the stock a fair value for the growth of 1.3% from its last price. The 12-month price forecast for the stock by analysts puts the stock’s mean price target at $10.81, which means the price per share could rise by nearly $0.14. The price range target is between a low of $8.23 and a high of $11.60. The stock would need to gain by about $8.02 to hit the estimated high or 0.86% from its 12-month low.

Amcor plc (NYSE:AMCR) Upgrades and Downgrades

In terms of rating changes, Robert W. Baird on December 20, 2019, Initiated Amcor plc (AMCR) at Neutral. They believe the stock could reach $11 in the near term.

Medtronic plc (NYSE:MDT) adds $0.29 on Wednesday

The MDT stock has risen 3.42% year-to-date and is currently trading at $117.33, which is -1.37% below its 52-week high. The company shares gained 0.25% on the day and have risen nearly 41.75% off a low hit. At current levels, Medtronic plc has a valuation of about $30.89B. As of 01/15/20, this stock has risen 0.71% during the week and closed at $117.04 in the previous session. However, recent Medtronic plc stock performance shows that MDT shares are 3.36% up over the last month, and 8.45% up for the last three months.

Earnings per share (EPS) estimates for the current quarter are $1.24, with the trailing 12-month share earnings at $3.42. The ratio is expected to be up by 7.30% for the current year 2019 and 7.90% for next year. Over the next 5-year period, earnings per share will be 7.61%. But will the MDT stock surprise in the current quarter results, where the $1.31 actual EPS reported on 10/30/2019 surprised by 2.30% or was higher by $0.03 from the estimated $1.28.

Sales Growth to climb 5.00% for the year

How well will Medtronic plc perform as a business over the current quarter, year and next 5-year period? Compared to the year-ago quarter, analysts forecast the company to bring in between $7.74B and $7.91B in current quarter sales. The consensus estimated for the current quarter is $7.81B from sales. Forecasts for this fiscal year are between $31.39B and $31.6B and the consensus estimate for sales is at $31.5B. MDT has its next quarter sales estimates at between $8.42B and $8.59B, with the quarter-over-quarter growth estimates at 4.40% and the annual growth forecast for the year at 5.00%.

Who owns shares in Medtronic plc (MDT)?

Let’s briefly focus on the share ownership of the Medtronic plc (NYSE:MDT) stock, where we find that 84.72% of shares are held by institutions. Vanguard Group, Inc. (The) tops the list of institutional owners as it is holding 113.51 million shares or 8.47% of shares outstanding. Blackrock Inc. and Wellington Management Company, LLP held 104.92 million and 73.09 million representing 7.83% and 5.45% respectively at the close of the last trading session. As of Sep 29, 2019, State Street Corporation accounted for 57.3 million shares at over 6.22 billion. This represented 4.27% of shares outstanding. Massachusetts Financial Services Co. held 54.64 million shares at over 5.93 billion representing 4.08% of shares outstanding.

MDT Insider Activity

Insider activity can also give a signal in terms of price direction. Looking at Medtronic plc (MDT), a total of 357197 shares have been sold by insiders over the last 6 months while 624867 shares were added in the same time span. On 10/11/2019, Chief Human Resources Officer & SVP by the name Surface Carol A sold 72848.0 shares worth $7.8 million at the price of $107.58 per share. Filings also show that Coyle Michael J sold a total of 37774.0 shares on 11/01/2019 valued at $4.1 million. Since the last insider activity, the company’s share price has climbed 8.07%.