MDT Should I Buy
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Medtronic PLC (MDT) is not a strong buy for a beginner, long-term investor at the moment. While the company has positive catalysts such as hedge fund buying and upcoming product launches, the mixed analyst ratings, declining financial performance, and lack of strong technical or proprietary trading signals suggest that waiting for a better entry point might be prudent.
The technical indicators are mixed. The MACD is positive and expanding, suggesting bullish momentum, but the RSI is neutral at 44.413, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its pivot level of 87.494, with resistance at 88.863 and support at 86.125. Overall, the technical outlook does not strongly support a buy decision.
Hedge funds are significantly increasing their holdings, with a 167.88% increase in buying over the last quarter.
Analysts highlight potential revenue growth from new product launches and the company's focus on multi-billion dollar markets.
The company's annualized dividend yield of 3.25% is attractive for long-term investors.
Financial performance in Q3 2026 showed declining net income (-11.67% YoY), EPS (-11.88% YoY), and gross margin (-2.58% YoY).
Analysts have mixed ratings, with several firms lowering price targets and expressing concerns about sustainability of growth into FY
The IPO of the MiniMed Group is expected to have a dilutive effect on earnings.
In Q3 2026, revenue increased by 8.74% YoY to $9.017 billion, but net income dropped by 11.67% YoY to $1.143 billion. EPS also declined by 11.88% YoY to $0.89, and gross margin fell by 2.58% YoY to 59.93%. The financial performance indicates growth in revenue but challenges in profitability.
Analyst ratings are mixed. Some firms, like Mizuho and Barclays, have an Outperform/Overweight rating with price targets of $125 and $118, respectively, citing strong product launches and revenue growth potential. However, others like JPMorgan and Baird have Neutral ratings with lower price targets of $100, expressing concerns about sustainability of growth and fiscal 2027 outlook.
