MDT - 35% Undervalued? Medtronic's Future Looks Very Bright

2024-04-12 11:00:23 ET

Summary

• Medtronic is undervalued compared to its long-term P/E ratio and has potential for strong returns.
• The company's focus on innovation and product diversification positions it well for future growth.
• MDT's strategic expansion into emerging markets enhances its revenue streams and market penetration.

Introduction

Allow me to start this article by showing you a chart I have used quite a few times in the past few months.

As we can see below, the market has a quite lofty valuation. The S&P 500 traded at 21x earnings going into this month. That's 1.3x its long-term standard deviation. In fact, it's the third-most expensive market since the early 1990s. Only the Dotcom and post-pandemic periods were more expensive....

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