Medtronic (MDT) Stock

In this article, we talk about five medical stocks: MDT, BSX, BDX, GEHC, and TEM, which are using AI in their operations. These companies are expected to benefit in 2025 as AI can help reduce expenses and enhance patient care.

Medtronic is still considered a "Buy" because its stock is undervalued, it has launched new products, and it has fixed its supply chain problems, even though it hasn't performed well in the last seven months. The company reported strong Q2 results, with a 5.25% increase in revenue compared to last year, and it anticipates organic revenue growth of 4.75%-5% for fiscal 2025. Medtronic's strategic acquisitions and emphasis on innovation and efficiency are likely to lead to steady growth and better profit margins in the next 1-3 years.

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MDT stock is facing challenges due to geopolitical problems and supply chain issues, even though the company has a growing portfolio and effective strategies in place.

Matrix Asset Advisors, an asset management firm, has published its investor letter for the third quarter of 2023, which you can download here. The company expects economic growth to continue in 2025, although it predicts a small decrease from the 3% GDP seen in the last quarter. As of September 30, Matrix's Large Cap Value portfolio (LCV) showed a significant increase.

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Medtronic is still considered a good investment because of its appealing valuation and consistent earnings per share growth, even with recent selling trends in the sector and some small losses. The company's Q2 results exceeded Wall Street's predictions, showing a 5% increase in revenue compared to last year, and management has updated their revenue and earnings forecasts for FY 2025. While there are risks like supply chain problems, competition, policy changes, and currency shifts, Medtronic's free cash flow yield and technical support levels remain solid.

Investors remain hopeful about MDT because of its strong growth in international markets. However, the weak overall economic situation raises worries about the company's profit margins.

Medtronic has shared encouraging new results for its Evolut TAVR from the Optimize PRO clinical study.