JHVEPhoto Medtronic (NYSE:MDT) continues to tread water as the broader market advances. The stock is up just 4% over the past 12 months, significantly underperforming the iShares U.S. Medical Devices ETF (IHI) which is higher by 10%. The Health Care Sector ETF (XLV) has returned better than 15% while the S&P 500 has beaten them all with a 28% performance from year-ago levels. I reiterate a buy rating on MDT, though. I see the stock as still undervalued today ahead of its Q1 2025 earnings report due out ...

Investment Thesis - Medtronic (MDT) is viewed as a low-volatility stock with solid dividend growth, maintaining a "Buy" rating despite a modest total return of 1.9% since mid-February [3] - The upcoming fiscal Q1 earnings report is anticipated on August 20, with expectations of revenue growth of approximately 2.5% year-over-year to $7.90 billion and flat adjusted EPS at $1.20 [5] Recent Earnings Performance - In the latest quarterly earnings released on May 23, MDT surpassed revenue and adjusted EPS consensus estimates, although it missed on GAAP EPS, with revenue showing a slight 0.5% year-over-year growth [4] Analyst Sentiment - Wall Street analysts have a bearish sentiment regarding the upcoming earnings, with 17 downgrade EPS revisions in the last 90 days [5] - Despite this, MDT has a strong earnings surprise record, with positive surprises in previous quarters [6] Dividend and Growth Prospects - MDT declared a quarterly dividend of $0.70, consistent with previous dividends, and received an upgrade from "Sell" to "Hold" by UBS analysts, driven by optimism in the diabetes segment [6] - The diabetes care devices industry is projected to grow at a 12.2% CAGR from 2024 to 2029, providing a favorable environment for MDT's diabetes business [6] FDA Approvals - MDT received FDA approval for its Simplera continuous glucose monitor and for asleep deep brain stimulation surgery, marking significant advancements in its product offerings [7] Valuation Metrics - MDT's share price increased by 3.7% over the last twelve months, with a 52-week range between $69 and $89, lagging behind the broader U.S. market and healthcare sector [8] - Valuation ratios are generally lower than MDT's historical averages, with a low "D" valuation grade assigned by Seeking Alpha Quant due to a high forward PEG ratio [8] Financial Projections - The dividend discount model (DDM) analysis suggests a fair price of $83.5 per share, indicating that MDT is approximately fairly valued [11] - A discounted cash flow (DCF) simulation estimates the business's fair value at around $118 billion, which is 10% higher than the current market cap, suggesting MDT is attractively valued based on future cash flows [13] Competitive Landscape - MDT faces fierce competition in the healthcare equipment industry, with competitors like Boston Scientific, Stryker, and Intuitive Surgical, which may impact investor perception [17] - Despite a larger revenue base, MDT's modest revenue growth compared to peers may affect its market valuation [20][22]

The office building of Medtronic Inc., an American medical technology company, is being pictured in ... [+] Shanghai, China, on July 23, 2024. (Photo by Costfoto/NurPhoto via Getty Images)NurPhoto via Getty ImagesMedtronic (NYSE: MDT) is scheduled to report its fiscal 2025 first-quarter results on Tuesday, August 20 (fiscal year ends in April). We expect Medtronic stock to trade higher post-Q1 results announcement, with its revenues and earnings expected to be slightly above the street estimates. The compan ...

GALWAY, Ireland, Aug. 16, 2024 /PRNewswire/ -- The board of directors of Medtronic plc (NYSE:MDT) on Thursday, August 15, 2024, approved the company's cash dividend for the second quarter of fiscal year 2025 of $0.70 per ordinary share. This quarterly declaration is consistent with the dividend increase announcement made by the company in May 2024. Medtronic is a constituent of the S&P 500 Dividend Aristocrats index, having increased its annual dividend payment for the past 47 consecutive years. The dividen ...

Medtronic (MDT) recently announced two major developments within its diabetes care business. The company received FDA approval for its Simplera continuous glucose monitor (CGM), which marks a significant step forward in diabetes management.Along with the FDA approval, Medtronic announced a global partnership with another MedTech stalwart, Abbott (ABT) . Considering the fact that the global diabetes care market has shown remarkable growth over the past few years, this partnership is expected to be strategica ...

Core Insights - Medtronic (MDT) is expected to report quarterly earnings of $1.20 per share, unchanged from the same period last year, with revenues forecasted at $7.9 billion, reflecting a year-over-year increase of 2.5% [1] - The consensus EPS estimate has remained stable over the past 30 days, indicating analysts' reassessment of their projections [1] Revenue Estimates - Analysts predict 'Net Sales- World Wide Revenue- Cardiovascular' to be $2.92 billion, a year-over-year increase of 2.6% [2] - 'Net Sales- World Wide Revenue- Diabetes' is expected to reach $613.04 million, indicating a 6.1% increase year over year [2] - 'Net Sales- World Wide Revenue- Medical Surgical' is estimated at $2.06 billion, reflecting a 1.1% year-over-year change [2] Additional Revenue Projections - 'Net Sales- World Wide Revenue- Neuroscience' is projected at $2.29 billion, showing a 3.3% increase from the prior-year quarter [3] - 'Net Sales- U.S. Revenue' is expected to be $4.03 billion, indicating a 2.6% change from the year-ago quarter [3] - 'Net Sales- ROW- Cardiovascular- Structural Heart & Aortic' is forecasted at $480.82 million, reflecting a 5.2% increase year over year [3] Regional and Segment Revenue Insights - 'Net Sales- ROW- Cardiovascular' is projected to reach $1.55 billion, indicating a year-over-year change of 3.6% [4] - 'Net Sales- U.S. Revenue- Cardiovascular- Cardiac Rhythm & Heart Failure' is estimated at $734.17 million, reflecting a 2% change from the prior-year quarter [4] - 'Net Sales- U.S. Revenue- Cardiovascular' is expected to be $1.37 billion, indicating a 1.5% increase from the year-ago quarter [4] Stock Performance - Over the past month, Medtronic shares have returned +0.6%, while the Zacks S&P 500 composite has decreased by -2.9% [4] - Medtronic currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the overall market in the near future [4]

ab 14 August 2024 Global Research and Evidence Lab Medtronic PLC Diabetes Turnaround Sustainable, Clearing Path to MSD Sales Growth; U/G to Neutral CGM Partnership Potentially Transformative for MDT Diabetes We are upgrading MDT to Neutral from Sell as we now have higher conviction that the recent Diabetes turnaround is sustainable. With Diabetes representing just under 10% of MDT's sales but also one of MDT's higher growth end markets, this business is critical to MDT's top-line growth trajectory. With thi ...

Medtronic (MDT) closed the most recent trading day at $82.27, moving +1.33% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.69% for the day. At the same time, the Dow added 1.04%, and the tech-heavy Nasdaq gained 2.43%.Shares of the medical device company have appreciated by 5.33% over the course of the past month, outperforming the Medical sector's loss of 0.57% and the S&P 500's loss of 4.78%.The investment community will be closely monitoring the perfo ...

GALWAY, Ireland, Aug. 12, 2024 /PRNewswire/ -- Medtronic plc (NYSE:MDT), a global leader in healthcare technology, today announced that it will report financial results for its first quarter of fiscal year 2025 on Tuesday, August 20, 2024. A news release will be issued at approximately 5:45 a.m. Central Daylight Time (CDT) and will be available at https://news.medtronic.com. The news release will include summary financial information for the company's first quarter of fiscal year 2025, which ended on Friday ...

Core Viewpoint - Federated Hermes, Inc. announced a proposed change in the diversification policy of its Federated Hermes MDT Large Cap Growth ETF, shifting from a diversified to a non-diversified company, pending shareholder approval [1][2]. Group 1: Fund Policy Change - The Board of Trustees approved the change in fundamental policy regarding diversification, which requires majority shareholder consent [1]. - The record date for determining shareholder consent is set for August 19, 2024, with the decision expected on August 23, 2024 [1][2]. - The change is anticipated to be effective on August 26, 2024, if approved by written consent [2]. Group 2: Investment Strategy - The Fund aims to approximate exposure to companies in the Russell 1000® Growth Index, although it is not designed to track the Index's overall composition or returns [3]. - The diversification classification change is intended to provide greater long-term flexibility in executing the investment strategy, especially when individual issuer weightings exceed diversification limits under the Investment Company Act of 1940 [3]. - The fundamental policy change is not expected to significantly impact the Fund's principal investment strategies [3]. Group 3: Company Overview - Federated Hermes, Inc. is a global leader in active investment management, with $782.7 billion in assets under management as of June 30, 2024 [4]. - The company provides a range of investment solutions, including equity, fixed-income, alternative/private markets, multi-asset, and liquidity management strategies to over 10,000 institutions and intermediaries worldwide [4]. - Headquartered in Pittsburgh, Federated Hermes employs more than 2,000 people across various global offices [4].