Abbott Laboratories (NYSE:ABT) is one of the 12 Set-It-and-Forget-It Stocks to Buy Now. Amid a positive second quarter and a top executive sale, the company gains an expansion opportunity from Medtronic. Abbott Gains Diabetes Tech Expansion Opportunity Following Earnings Beat and Insider Sale Abbott Laboratories (NYSE:ABT) reported a 6.9% increase in sales for the second quarter of 2025. The earnings report, announced on July 17, 2025, also highlighted an Adjusted EPS of $1.26, which beat the consensus ...

Core Insights - Medtronic plc (MDT) has received FDA approval for the Altaviva device, a minimally invasive implantable tibial neuromodulation therapy aimed at treating urge urinary incontinence, marking a significant advancement in bladder control therapies [1][9] - The introduction of the Altaviva device positions MDT as the only company with a comprehensive portfolio of neuromodulation therapies for bladder control symptoms, which is expected to enhance revenue growth and improve stock performance [3][4] Company Developments - The Altaviva device features a 15-year battery life, quick recharging capabilities, and is MRI-compatible, making it a patient-friendly option for those suffering from urge urinary incontinence [6][9] - Medtronic's market capitalization stands at $121.80 billion, with a projected revenue growth of 6.8% for fiscal 2026 compared to fiscal 2025 [4] - The company has consistently outperformed earnings expectations in the past four quarters, with an average surprise of 2.20% [4] Industry Context - Bladder control issues affect approximately 43 million U.S. adults, with nearly 16 million experiencing urge urinary incontinence, indicating a substantial market for the Altaviva device [10] - The global urinary incontinence therapeutics market is expected to grow at a CAGR of 4.0% from 2024 to 2030, driven by an aging population and increased awareness [10]

Core Insights - Medtronic plc has received FDA approval for its SmartGuard algorithm as an interoperable automated glycemic controller, which integrates with Abbott's Instinct sensor for type 1 diabetes [2] - The MiniMed 780G system has also been approved for adults with insulin-requiring type 2 diabetes, marking a significant advancement in automated insulin delivery systems [3] - Clinical trials supporting these products indicate improved HbA1c levels, greater time in range, and reduced diabetes distress for patients [3] Company Developments - The collaboration with Abbott aims to create a smarter dosing ecosystem to enhance daily management and improve the quality of life for diabetes patients [4] - Medtronic is recognized as a global healthcare technology leader, providing innovative therapies and devices for over 70 health conditions [4] Market Position - Despite the advancements and potential of Medtronic, it is listed among stocks recommended for sale, indicating a cautious outlook from some analysts [1][4] - There is a suggestion that certain AI stocks may offer better investment opportunities with higher upside potential and lower downside risk compared to Medtronic [5]

Core Insights - Medtronic plc (MDT) has achieved two significant regulatory milestones for its MiniMed 780G system, including FDA clearance for the SmartGuard algorithm and approval for use in adults with insulin-requiring type 2 diabetes [1][9]. Regulatory Achievements - The FDA has cleared the SmartGuard algorithm as an interoperable automated glycemic controller, allowing integration with Abbott's Instinct sensor for type 1 diabetes [1][5]. - The MiniMed 780G system is now approved for adults aged 18 and above with insulin-requiring type 2 diabetes, making it the first AID system with Meal Detection technology for this demographic [7][9]. Market Performance and Growth - Following the announcement, MDT shares experienced a slight decline of 1.2%, closing at $92.25 [3]. - The Diabetes business is growing above the company average, driven by the MiniMed 780G system and Simpler Sync sensor in international markets [3]. - Medtronic has a market capitalization of $118.33 billion, with a projected revenue growth of 6.8% for fiscal 2026 compared to fiscal 2025 [4]. Product Integration and Future Plans - The Instinct sensor, designed by Abbott, is the world's smallest integrated CGM, with a wear time of up to 15 days, and will be integrated with the MiniMed 780G system [5][6]. - Medtronic and Abbott are finalizing compliance documentation for sensor integration, with pre-orders for the Simplera Sync sensor expected to open soon [6][11]. Industry Prospects - The global diabetes device market was valued at $32.74 billion in 2024 and is projected to grow at a compound annual growth rate of 7.7% through 2034 [12]. - Key factors driving market growth include rising obesity rates, increased health consciousness, and advancements in diabetes monitoring technology [13]. Recent Developments - In July, Medtronic received CE Mark approval to expand the MiniMed 780G system's indications for use in individuals aged two years and older, during pregnancy, and for type 2 insulin-requiring diabetes [14].

Company Overview - Trinity Biotech plc (TRIB) is a commercial-stage biotechnology company focused on human diagnostics and diabetes management solutions, including wearable biosensors [2] Key Developments - Trinity Biotech announced positive clinical trial results for its next-generation continuous glucose monitoring (CGM) technology, CGM+, confirming accurate glucose readings over a 15-day wear period without finger-stick calibration [1][8] - The redesigned proprietary needle-free glucose sensor reduces disposable components, significantly lowering the cost of care compared to current leading market products [1][8] - The CGM+ platform is designed to enhance accessibility and increase utilization of CGM technology, addressing the high cost of existing devices that hinders widespread adoption [3] Technical Achievements - The elimination of finger-stick calibration is considered the most significant technical achievement for TRIB, aligning its glucose sensor with market leaders while offering a differentiated product that is more affordable, reusable, and sustainable [4] Market Potential - The global CGM market is projected to grow from $13 billion in 2025 to $28 billion by 2030, driven by rising diabetes prevalence and demand for real-time health data, which is expected to provide a significant boost to Trinity Biotech's business [5] Product Development - Trinity Biotech unveiled its new flagship product, CGM+, which is positioned for the $260 billion AI wearables market and combines multi-sensor data with real-time analytics to meet the demands of AI-powered healthcare [6] Competitive Landscape - Medtronic plc (MDT) and Abbott Laboratories (ABT) are notable peers in the diabetes management space, with both companies making advancements in CGM technology and reporting robust growth in their respective diabetes care segments [7][9] - DexCom, Inc. (DXCM) also reported strong revenue growth and received FDA clearance for its Dexcom G7 15 Day CGM System, showcasing extensive clinical evidence for its usage in various diabetes conditions [10]

Core Insights - DexCom (DXCM) reported strong first-quarter 2025 results driven by high demand, record new patient growth, and progress in strategic initiatives [1] - The company’s shares have increased by 18.6% quarter to date, outperforming the industry’s decline of 4.5% [2] - DexCom has a market capitalization of $31.76 billion and projects a 23.1% growth rate over the next five years [2] Access Gain and Market Penetration - Significant expansion in reimbursement coverage for type 2 diabetes (T2D) patients, particularly non-insulin users, is expected to unlock access for nearly 6 million individuals [4] - The first quarter of 2025 saw a record increase in new patient starts from this cohort, the highest in DexCom's history [4] - The over-the-counter CGM, Stelo, is capturing a broader audience, including prediabetes patients and those interested in wellness [5][8] Innovation and Commercial Execution - The launch of the 15-Day G7 system is anticipated to enhance accuracy and product differentiation, potentially improving gross margins [10] - DexCom is optimizing its sales force and expanding its international presence, particularly in France and Japan [11] - The company has a strong cash position of $2.7 billion and announced a $750 million share buyback, indicating confidence in long-term cash flow [12] Estimate Trend - The Zacks Consensus Estimate for 2025 earnings per share remains stable at $2.03, with the second-quarter revenue estimate at $1.12 billion, reflecting an 11.8% year-over-year improvement [13][15] Navigating Near-Term Challenges - Gross margin guidance for fiscal 2025 has been revised down to nearly 62% due to supply-chain disruptions and increased freight costs [16] - DexCom is addressing an FDA warning letter from 2024 inspections, which requires ongoing resource allocation but does not restrict product approvals [17] - The company is advocating for Medicare coverage for non-insulin T2D users, contingent on a trial set to report results in late 2025 or early 2026 [18] CGM Competition on the Rise - DexCom faces increasing competition from Abbott Laboratories, Medtronic, and Senseonics, which are innovating rapidly in the CGM market [19] - Abbott's expansion with its FreeStyle Libre family and OTC devices directly challenges DexCom's Stelo strategy [20] - Medtronic's integration of CGM with insulin pumps and Senseonics' long-wear implantable CGM are also competitive threats [21][22]

Financial Performance & Guidance - Medtronic reported Q4 FY25 revenue of $8.9 billion, with 5.4% organic growth[17] - Adjusted diluted EPS for Q4 FY25 was $1.62, an 11% year-over-year increase[17] - The company is issuing FY26 organic revenue growth guidance of approximately 5%[15] - FY26 adjusted EPS guidance, including tariff impacts, is $5.50 to $5.60[15] - Medtronic anticipates a net tariff impact to COGS of $200-350 million in FY26[15] Segment Highlights - Cardiovascular segment revenue reached $3.336 billion, with 7.8% organic growth, including nearly 30% growth in Cardiac Ablation Solutions (CAS)[17, 15] - Neuroscience segment revenue was $2.620 billion, showing 3.7% organic growth[17] - Diabetes segment achieved $728 million in revenue, with 12% organic growth[17] - Medical Surgical segment reported $2.212 billion in revenue, with 2% organic growth[17] Strategic Initiatives - Medtronic announced its intent to separate the Diabetes business into a new standalone public company within 18 months[15] - The company increased its dividend for the 48th consecutive year[15] - Medtronic is increasing investments in growth drivers and streamlining its operating model[15]

Financial Data and Key Metrics Changes - The company reported Q3 revenue of $8.3 billion, representing a 4.1% organic growth year-over-year [31] - Adjusted EPS was $1.39, up 6.9%, exceeding consensus by three cents [31][32] - Adjusted gross margin improved to 66.6%, up 50 basis points year-over-year, while adjusted operating margin was 26.2%, up 100 basis points [32][33] Business Line Data and Key Metrics Changes - The cardiovascular portfolio grew mid single digits overall, with cardiac ablation solutions growing 22% [9][10] - Structural heart business grew high single digits, driven by the Evolut FX plus TAVR system [13] - Cardiac pacing therapies grew 9%, supported by the leadless pacemaker franchise [14] - The diabetes segment achieved 10% growth, marking the fifth consecutive quarter of double-digit growth [28] Market Data and Key Metrics Changes - International markets grew 5%, with high single-digit growth in Japan and emerging markets showing high teens growth in India [32] - The U.S. market saw a change in distributor buying patterns impacting surgical performance, but overall purchasing remained stable [23][24] Company Strategy and Development Direction - The company is focusing on innovation in key growth areas such as renal denervation and expanding its PFA portfolio [8][12] - There is a commitment to maintaining disciplined pricing and controlling SG&A growth to enhance margins while investing in growth drivers [66][68] - The company is actively evaluating tuck-in acquisitions to enhance growth and margin profiles [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, expecting revenue and EPS growth to accelerate in Q4 [9][35] - The company is optimistic about the impact of new technologies and market expansions, particularly in hypertension and diabetes [16][28] - Management acknowledged temporary distributor dynamics affecting surgical performance but expects resolution in the upcoming quarters [23][90] Other Important Information - The company is preparing for significant product launches and regulatory submissions, including for the HUGO robotic platform and renal denervation procedures [25][29] - Management highlighted the importance of maintaining a diversified portfolio to manage risks and drive earnings [39] Q&A Session Summary Question: Guidance for fiscal 2026 - Management reiterated guidance for FY 2025 organic revenue growth of 4.75% to 5% and high single-digit EPS growth in the back half of the year [46][47] Question: Drivers of AF Solutions growth - Management highlighted strong demand for PFA technology and improved supply capabilities, indicating confidence in reaching a $2 billion revenue target [54][55] Question: Balancing investment and margin expansion - Management emphasized the ability to invest in growth drivers while maintaining margin improvement through disciplined pricing and operational efficiencies [66][68] Question: Confidence in U.S. Surgical business recovery - Management noted that distributor inventory adjustments were temporary and expected to normalize, with confidence in returning to growth aligned with corporate averages [92][93] Question: Peripheral vascular business decline - Management attributed the decline to specific market dynamics in China and expressed confidence in overcoming these challenges [100] Question: International renal denervation opportunities - Management discussed the importance of country-specific reimbursement efforts and the potential for global market expansion following U.S. coverage developments [108][109]