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Minneapolis, Minnesota-based Medtronic plc (MDT) develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide. With a market cap of $113.6 billion, Medtronic operates through the Cardiovascular, Medical Surgical, Neuroscience, and Diabetes segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Medtronic fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the medical devices industry. Medtronic innovates solutions that treat 70-plus health conditions, from Parkinson's to diabetes.
Medtronic has dipped 1.3% from its 52-week high of $90.13 reached on Aug. 26. MDT gained 8.3% over the past three months, outpacing the US Medical Devices Ishares ETF’s (IHI) 5.5% gains during the same time frame.
However, in the longer term MDT has underperformed IHI. MDT is up 8% in 2024 and 8.2% over the past 52 weeks compared to IHI’s 8.8% gains on a YTD basis and 11.7% returns over the past year.
To confirm the recent bullish trend, MDT has traded above its 50-day moving average since early August and above its 200-day moving average since mid-August.
Despite underperforming the broader industry over the past year, MDT has demonstrated impressive strength recently, gaining 9.1% in the past month. Shares of Medtronic saw marginal gains after the release of its Q1 earnings on Aug. 20 and remained in green for the next four trading sessions.
The company reported a 2.8% year-over-year growth in total revenue, reaching $7.9 billion, and its EPS of $1.23 surpassed the consensus estimates by 2.5%. Moreover, the company improved its Fiscal year 2025 organic revenue growth guidance to 4.5- 5% compared to the previous 4-5% range.
Medtronic’s competitor, Stryker Corporation (SYK), has outperformed MDT. SYK gained 26.4% over the past 52 weeks and 20.1% on a YTD basis, outperforming MDT’s single-digit returns.
Among the 28 analysts covering the MDT stock, the consensus rating is a “Moderate Buy.” The mean price target of $93.43 for the MDT stock represents a potential upside of 5% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
