Stock price when the opinion was issued
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 have struggled over the most recent years after being a darling. There is the question of how healthcare will be paid for in the US. Device companies have the hardest headwinds. They are also in a very competitive area. It is not expensive and is a perfectly good way to be in the health care area. Their struggles may mean they have more upside potential if the healthcare sector improves.