MDT Should I Buy
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Medtronic PLC (MDT) is not a strong buy at the moment for a beginner, long-term investor with $50,000-$100,000 to invest. The stock is currently in a bearish technical trend, with declining financial performance and mixed analyst sentiment. While there are some positive catalysts, such as the CathWorks acquisition and hedge fund buying, the lack of strong growth signals and the absence of proprietary trading signals suggest holding off on investing right now.
The technical indicators for MDT are bearish. The MACD is below 0 and negatively contracting, the RSI is neutral at 37.751, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level (S1: 82.856) with a pre-market price of 83.32, indicating potential downside risk. Pivot levels suggest resistance at 85.419 and 87.983, making upward movement challenging.
Hedge funds are significantly increasing their buying activity, up 167.88% over the last quarter.
The acquisition of CathWorks for $585 million enhances Medtronic's cardiovascular product portfolio.
MODERATO II trial results showed promising outcomes in blood pressure reduction, which could bolster the company's product credibility.
Analysts have consistently lowered price targets, with many maintaining Neutral or Hold ratings.
Financial performance in Q3 2026 showed declining net income (-11.67% YoY) and EPS (-11.88% YoY), along with a drop in gross margin (-2.58% YoY).
The MiniMed IPO and related one-time expenses have added uncertainty to the company's near-term financial outlook.
Stock trend analysis suggests a 60% chance of further declines in the next month (-5.32%).
In Q3 2026, Medtronic's revenue increased by 8.74% YoY to $9.02 billion. However, net income dropped by 11.67% YoY to $1.14 billion, and EPS fell by 11.88% YoY to $0.89. Gross margin also declined to 59.93%, down 2.58% YoY, indicating pressure on profitability despite revenue growth.
Analysts have lowered price targets across the board, with the most recent targets ranging from $90 to $120. The majority of ratings are Neutral or Hold, with only a few Outperform or Buy ratings. Analysts cite concerns over the MiniMed IPO, one-time expenses, and the need for faster revenue and EPS growth to justify higher multiples.
