Bruce Murray Medtronic Inc MDT-N TOP PICK May 13, 2016

They use AI in their medical devices; have lots of good devices.

MDT is a mature MedTech company that is now trading at a 15.9x Forward P/E. Over the last few years, MDT’s valuation has ranged from 13.4x to 22.8x Forward P/E, we think the current valuation is fairly attractive. MDT’s share price has performed well recently due to a combination of 1) investors moving to defensive sectors with stable cash flows 2) MDT reported very solid earnings with a 5.3% organic growth rate.
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MDT is a mature MedTech company that is now trading at a 15.9x Forward P/E. Over the last few years, MDT’s valuation has ranged from 13.4x to 22.8x Forward P/E, we think the current valuation is fairly attractive. MDT’s share price has performed well recently due to a combination of 1) investors moving to defensive sectors with stable cash flows 2) MDT reported very solid earnings with a 5.3% organic growth rate.
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They just delivered a fantastic quarter recently and has rallied 6% since then as the market rotates to healthcare.

Lots of development can happen in the area of medical devices. Great business. Keeps people out of hospitals. These companies should do well over the next while, as medical solutions move away from being drug-centred. Prefers SYK.

It's gone from a market darling to loser, trading at a 10-year low now. It's a show-me stock, though cheap at 15x PE. If the company can grow 5%, maybe it's worth buying. They need to work out some issues first.

Well-managed. She likes this sector, medical devices, becuse procedures are picking up, and aging demographics are another tailwind.

It's been lost in the wilderness for years, but has had a bunch of successful product launches and the stock is now cheap.

HQ is in Minneapolis, domiciled in Ireland for tax purposes. Pacemakers, etc. No performance, really, for the last 20 years. Since Covid, demand and pricing power have fallen off. Dividend's not growing at a huge pace.

They report Wednesday. Likes it, but the stock is inconsistent, even if their numbers are strong.