of Medtronic NYSE: MDT The share price is well below its peak in 2021, offering investors a deep value opportunity. The stock price is down due to the post-Covid recovery leading to sluggish growth, which are factors that won’t last forever. Medtronic’s ability to sustain operational quality and distribution growth will survive.
Medtronic today
(as of 11/27/2024 ET)
- 52-week range
- $75.96
▼
$92.68
- Dividend yield
- 3.25%
- P/E ratio
- 26.38
- Price target
- $95.27
Soft or not, growth is growth, and that’s an important one Dividend elite Like this. With the increase in forecasts, the outlook for capital returns is as rosy as ever, and so is the technical outlook for the stock price. The Stock price down in 2023 and is now in the midst of a reversal that will likely drive its stock price to record levels.
Value and yield are central to the Medtronic investment thesis this year. Trading near rock bottom, it Med-tech company Value at just 16 times earnings, which is at the lower end of the historical range and less than half the peak. The lower valuation puts the yield in the high end of its range, above 3.2%, near $85 a share, with the dividend expected to rise and the share price expected to follow. Even without the distribution increase, there are also buybacks to consider, which have reduced numbers by more than 3% so far in F2025.
Medtronic Outpace increases prognosis and guidance
Medtronic may not have inspired the bulls when it Reported for Q2 F2025But the results are no less strong because of it. The company grew revenue by 5% despite the impact of forex headwinds, down 30 basis points from the total. Revenues are also stronger than consensus estimates, which are expected to be 150 basis points lower. Multiple franchises across segments are cited as providing strength, reflecting the strength of Medtronic’s diversified portfolio. Medical-surgical was the weakest segment, growing only 1.2%, while diabetes grew more than 12%, and Cardiac and neuroscience The segments grew by 6% and 7%.
Medtronic MarketRank™ Stock Analysis
- Overall MarketRank™
- 99th percentile
- Analyst rating
- catch up
- upside/downside
- Up 10.4%
- Low interest rate
- healthy
- The power of dividends
- stronger
- Environmental score
- -1.28
- Sense of news
- 0.93
- Insider trading
- N/A
- Prof. Increase in earnings
- 7.33%
Marginal news received but favorable for outlook and investors. Adjusted net income contracted compared to the prior year due to the impact of FX changes. That aside, adjusted earnings are up 8%, but the key detail is cash flow. The company’s GAAP net earnings and cash flow increased 40% due to improved efficiency, which is expected to remain.
The company’s guidance supports higher Medtronic share prices. It raised its guidance for full-year fiscal 2025 revenue and earnings, putting the new low-end for revenue above the previous high and the lower-end for earnings in line with the consensus forecast. This should lead analysts to stand by them Stock price targetsIf not increase them, as is the trend in 2024.
Of course, analyst sentiment is trending upward in 2024, leading the market into a reversal as coverage increases and the consensus price target rises. MDT stock picked up five or 40% more analysts over the past 12 months, and its price target has risen 5%, indicating a 15% upside from important support targets. A move toward the $95 consensus target would put the market at a multi-year high and confirm a major reversal pattern.
Medtronic is the opposite of head and shoulders
Medtronic’s share price is in a classic head-and-shoulders inversion. A head formed with a low in the fall of 2023, and now the second shoulder is complete. All that’s left is for the market to move up and establish a new high, opening the door for a bigger move. The critical resistance point in 2024 is near $90.50, the neckline of the pattern. A move above that level would be bullish and could lead to a quick $18 advance equal to the intensity of the reversal pattern. The larger move faces resistance at points including $110 and $120 but may move above them over time.
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