3 Reasons to Buy Medtronic Stock
Medical device specialist (NYSE: MDT) has not been the best of investments over the past five years. The stock has significantly lagged the market over this period, thanks to weak business fundamentals, including slow revenue growth. The healthcare giant now faces additional obstacles, such as the threat of steeper tariffs due to President Donald Trump's aggressive trade policies.
Even amid all that, Medtronic has plenty of redeeming qualities and could still be a solid investment for long-term investors. Here are three reasons why.
Medtronic recently announced that it will be spinning off its diabetes care unit, which will become a stand-alone, publicly traded company. Although sales of diabetes products have been growing faster than the rest of Medtronic's business, they have also been a drag on margins. During the company's fiscal year 2025, which ended on April 25, diabetes care accounted for 8% of revenue but only 4% of operating profits. Medtronic's other segments are not growing their sales as quickly, but they have more profitable margins.
Source Fool.com
Medtronic plc Stock
We see a rather positive sentiment for Medtronic plc with 19 Buy predictions and 1 Sell predictions.
With a target price of 89 € there is a slightly positive potential of 6.18% for Medtronic plc compared to the current price of 83.82 €.
