Medtronic: The Investment Appeal of a Medical Device Giant
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Diversified Business Portfolio: Medtronic, as one of the world's largest medical device companies, operates across cardiovascular, neuroscience, and surgical sectors, and despite the upcoming spinoff of its diabetes business, it maintains strong growth potential, showcasing its competitive edge in the healthcare market.
- Innovation-Driven Growth: The Hugo surgical robot exemplifies Medtronic's innovative capabilities in a rapidly growing medical market, and with a long history of success, the company's ongoing investments at the technological forefront keep it ahead in the industry.
- Stable Dividend Record: With 48 consecutive years of dividend increases, Medtronic is nearing the status of a 'Dividend King', and this robust dividend growth record reflects its solid business model and execution during economic fluctuations, enhancing investor confidence.
- Future Growth Expectations: The company anticipates a revenue growth of 5.5% for fiscal 2026, and in the context of a $120 billion market value, this target indicates that Medtronic is beginning to see early benefits from its transformation, further solidifying its market position.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy MDT?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on MDT
Wall Street analysts forecast MDT stock price to rise
20 Analyst Rating
11 Buy
9 Hold
0 Sell
Moderate Buy
Current: 97.580
Low
102.00
Averages
111.76
High
120.00
Current: 97.580
Low
102.00
Averages
111.76
High
120.00
About MDT
Medtronic Public Limited Company is an Ireland-based company, which provides healthcare technology solutions. The Company’s products category includes Advanced Surgical Technology; Cardiac Rhythm; Cardiovascular; Digestive & Gastrointestinal; Ear, Nose & Throat; General Surgery; Gynecological; Neurological; Oral & Maxillofacial; Patient Monitoring; Renal Care; Respiratory; Spinal & Orthopedic; Surgical Navigation & Imaging; Urological; Product Manuals; Product Ordering & Inquiries; and Product Performance & Advisories. Its products include Cardiac Implantable Electronic Device (CIED) Stabilization, Aortic Stent Graft Products, CareLink Personal Therapy Management Software, CareLink Pro Therapy Management Software. Its services and solutions include Ambulatory Surgery Center Resources, Care Management Services, Digital Connectivity Information Technology (IT) Support, Equipment Services and Support, Innovation Lab, Medtronic Healthcare Consulting, and Office-Based Sinus Surgery.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Medtronic Approaches Dividend King Status
- Dividend Growth Record: Medtronic has raised its dividend for 48 consecutive years, nearing Dividend King status, which reflects its strong business model and stable financial performance, likely attracting more long-term investors.
- Business Diversification: With a diversified portfolio across cardiovascular, neuroscience, and surgical sectors, Medtronic is set to maintain strong growth potential even after spinning off its diabetes business, ensuring competitiveness in the medical device industry.
- Innovation Drive: The introduction of the Hugo surgical robot exemplifies Medtronic's commitment to innovation in a fast-growing medical market, indicating that ongoing investments in technology will enhance future market share.
- Future Growth Expectations: Management projects a revenue growth of 5.5% for fiscal 2026, which is a solid target for a company with a market value of $120 billion, showcasing its potential to achieve growth during its transformation.
See More
Medtronic: The Investment Appeal of a Medical Device Giant
- Diversified Business Portfolio: Medtronic, as one of the world's largest medical device companies, operates across cardiovascular, neuroscience, and surgical sectors, and despite the upcoming spinoff of its diabetes business, it maintains strong growth potential, showcasing its competitive edge in the healthcare market.
- Innovation-Driven Growth: The Hugo surgical robot exemplifies Medtronic's innovative capabilities in a rapidly growing medical market, and with a long history of success, the company's ongoing investments at the technological forefront keep it ahead in the industry.
- Stable Dividend Record: With 48 consecutive years of dividend increases, Medtronic is nearing the status of a 'Dividend King', and this robust dividend growth record reflects its solid business model and execution during economic fluctuations, enhancing investor confidence.
- Future Growth Expectations: The company anticipates a revenue growth of 5.5% for fiscal 2026, and in the context of a $120 billion market value, this target indicates that Medtronic is beginning to see early benefits from its transformation, further solidifying its market position.
See More
Medtronic Reports Strong Q3 Earnings, Beats Estimates
- Earnings Beat: Medtronic reported an adjusted EPS of $1.36 for Q3, surpassing market expectations of $1.33, indicating strong performance in the medical device sector and boosting investor confidence.
- Sales Growth: The company achieved quarterly sales of $9.017 billion, exceeding the anticipated $8.905 billion, demonstrating sustained demand for its products and enhancing market share and profitability.
- Guidance Affirmation: Medtronic reaffirmed its FY2026 adjusted EPS guidance of $5.62 to $5.66, aligning with market estimates of $5.65, showcasing the company's confidence in future performance.
- Analyst Rating Changes: Needham analyst maintained a Buy rating on Medtronic but lowered the price target from $121 to $120, while Baird analyst kept a Neutral rating and reduced the target from $103 to $100, reflecting cautious sentiment regarding the company's outlook.
See More
U.S. Stocks Slightly Up as Fear Index Eases
- Fear Index Update: The CNN Money Fear & Greed Index registered at 37.3 on Tuesday, slightly up from 36.1, indicating a minor easing in market sentiment while still remaining in the 'Fear' zone, suggesting cautious investor behavior.
- Market Performance: On Tuesday, U.S. stocks saw slight gains, with the S&P 500 rising approximately 0.1% to close at 6,843.22, despite all major indices experiencing losses last week, including a 1.4% drop in the S&P 500.
- Sector Performance Divergence: Most sectors within the S&P 500 closed negatively, with consumer staples, energy, and materials stocks suffering the largest losses, while real estate and financial stocks bucked the trend, indicating a divergence in sector performance amid overall market uncertainty.
- Manufacturing Index Decline: The NY Empire State Manufacturing Index fell to 7.1 in February, down from 7.7 the previous month and below market expectations of 7, reflecting a slowdown in economic activity that could negatively impact future market sentiment.
See More
U.S. Stocks Close Mixed, Apple Shares Rise on Product Launch News
- Market Performance Fluctuates: On Tuesday, the S&P 500 rose by 0.10%, the Dow Jones increased by 0.07%, while the Nasdaq 100 fell by 0.13%, indicating a mixed market recovery from early losses, with the Nasdaq 100 hitting a 2.75-month low, reflecting investor caution towards tech stocks.
- Apple Product Launch Boost: Apple shares surged over 3% after announcing a product launch on March 4, with several new devices expected in the coming weeks, which not only boosted Apple's market performance but also generated positive sentiment across the tech sector.
- Airline Stocks Rally: Airline stocks showed strong performance on Tuesday, led by a 6% increase in Southwest Airlines after UBS upgraded its rating from neutral to buy with a price target of $73, which not only enhanced the overall performance of airline stocks but also contributed to a more optimistic market outlook.
- Mixed Economic Data: The U.S. February NAHB housing market index unexpectedly fell to a 5-month low of 36, below the expected 38, while the February Empire manufacturing survey slightly declined to 7.1, indicating uncertainty in economic recovery, as the market remains focused on upcoming corporate earnings and economic news.
See More
Medtronic Reports Decline in Q3 Profit
- Profit Decline: Medtronic's Q3 net profit fell to $1.143 billion, or $0.89 per share, down from $1.294 billion and $1.01 per share last year, indicating significant pressure on the company's profitability.
- Adjusted Earnings: Excluding items, Medtronic reported adjusted earnings of $1.750 billion, or $1.36 per share, showing some resilience in profitability despite the overall decline in net income.
- Revenue Growth: The company experienced an 8.7% year-over-year revenue increase, reaching $9.017 billion compared to $8.292 billion last year, indicating strong market demand.
- Future Guidance: Medtronic's full-year EPS guidance is set between $5.62 and $5.66, reflecting management's optimism about future earnings despite the current profit decline, suggesting confidence in business prospects.
See More
Medtronic Approaches Dividend King Status
- Dividend Growth Record: Medtronic has raised its dividend for 48 consecutive years, nearing Dividend King status, which reflects its strong business model and stable financial performance, likely attracting more long-term investors.
- Business Diversification: With a diversified portfolio across cardiovascular, neuroscience, and surgical sectors, Medtronic is set to maintain strong growth potential even after spinning off its diabetes business, ensuring competitiveness in the medical device industry.
- Innovation Drive: The introduction of the Hugo surgical robot exemplifies Medtronic's commitment to innovation in a fast-growing medical market, indicating that ongoing investments in technology will enhance future market share.
- Future Growth Expectations: Management projects a revenue growth of 5.5% for fiscal 2026, which is a solid target for a company with a market value of $120 billion, showcasing its potential to achieve growth during its transformation.
See More
Medtronic: The Investment Appeal of a Medical Device Giant
- Diversified Business Portfolio: Medtronic, as one of the world's largest medical device companies, operates across cardiovascular, neuroscience, and surgical sectors, and despite the upcoming spinoff of its diabetes business, it maintains strong growth potential, showcasing its competitive edge in the healthcare market.
- Innovation-Driven Growth: The Hugo surgical robot exemplifies Medtronic's innovative capabilities in a rapidly growing medical market, and with a long history of success, the company's ongoing investments at the technological forefront keep it ahead in the industry.
- Stable Dividend Record: With 48 consecutive years of dividend increases, Medtronic is nearing the status of a 'Dividend King', and this robust dividend growth record reflects its solid business model and execution during economic fluctuations, enhancing investor confidence.
- Future Growth Expectations: The company anticipates a revenue growth of 5.5% for fiscal 2026, and in the context of a $120 billion market value, this target indicates that Medtronic is beginning to see early benefits from its transformation, further solidifying its market position.
See More
Medtronic Reports Strong Q3 Earnings, Beats Estimates
- Earnings Beat: Medtronic reported an adjusted EPS of $1.36 for Q3, surpassing market expectations of $1.33, indicating strong performance in the medical device sector and boosting investor confidence.
- Sales Growth: The company achieved quarterly sales of $9.017 billion, exceeding the anticipated $8.905 billion, demonstrating sustained demand for its products and enhancing market share and profitability.
- Guidance Affirmation: Medtronic reaffirmed its FY2026 adjusted EPS guidance of $5.62 to $5.66, aligning with market estimates of $5.65, showcasing the company's confidence in future performance.
- Analyst Rating Changes: Needham analyst maintained a Buy rating on Medtronic but lowered the price target from $121 to $120, while Baird analyst kept a Neutral rating and reduced the target from $103 to $100, reflecting cautious sentiment regarding the company's outlook.
See More
U.S. Stocks Slightly Up as Fear Index Eases
- Fear Index Update: The CNN Money Fear & Greed Index registered at 37.3 on Tuesday, slightly up from 36.1, indicating a minor easing in market sentiment while still remaining in the 'Fear' zone, suggesting cautious investor behavior.
- Market Performance: On Tuesday, U.S. stocks saw slight gains, with the S&P 500 rising approximately 0.1% to close at 6,843.22, despite all major indices experiencing losses last week, including a 1.4% drop in the S&P 500.
- Sector Performance Divergence: Most sectors within the S&P 500 closed negatively, with consumer staples, energy, and materials stocks suffering the largest losses, while real estate and financial stocks bucked the trend, indicating a divergence in sector performance amid overall market uncertainty.
- Manufacturing Index Decline: The NY Empire State Manufacturing Index fell to 7.1 in February, down from 7.7 the previous month and below market expectations of 7, reflecting a slowdown in economic activity that could negatively impact future market sentiment.
See More
U.S. Stocks Close Mixed, Apple Shares Rise on Product Launch News
- Market Performance Fluctuates: On Tuesday, the S&P 500 rose by 0.10%, the Dow Jones increased by 0.07%, while the Nasdaq 100 fell by 0.13%, indicating a mixed market recovery from early losses, with the Nasdaq 100 hitting a 2.75-month low, reflecting investor caution towards tech stocks.
- Apple Product Launch Boost: Apple shares surged over 3% after announcing a product launch on March 4, with several new devices expected in the coming weeks, which not only boosted Apple's market performance but also generated positive sentiment across the tech sector.
- Airline Stocks Rally: Airline stocks showed strong performance on Tuesday, led by a 6% increase in Southwest Airlines after UBS upgraded its rating from neutral to buy with a price target of $73, which not only enhanced the overall performance of airline stocks but also contributed to a more optimistic market outlook.
- Mixed Economic Data: The U.S. February NAHB housing market index unexpectedly fell to a 5-month low of 36, below the expected 38, while the February Empire manufacturing survey slightly declined to 7.1, indicating uncertainty in economic recovery, as the market remains focused on upcoming corporate earnings and economic news.
See More
Medtronic Reports Decline in Q3 Profit
- Profit Decline: Medtronic's Q3 net profit fell to $1.143 billion, or $0.89 per share, down from $1.294 billion and $1.01 per share last year, indicating significant pressure on the company's profitability.
- Adjusted Earnings: Excluding items, Medtronic reported adjusted earnings of $1.750 billion, or $1.36 per share, showing some resilience in profitability despite the overall decline in net income.
- Revenue Growth: The company experienced an 8.7% year-over-year revenue increase, reaching $9.017 billion compared to $8.292 billion last year, indicating strong market demand.
- Future Guidance: Medtronic's full-year EPS guidance is set between $5.62 and $5.66, reflecting management's optimism about future earnings despite the current profit decline, suggesting confidence in business prospects.
See More
