MDT - Medtronic: Looking Ahead To FY 2025 EPS Growth Shareholder Friendly Actions

2024-05-14 06:44:47 ET

Summary

• Medical device stocks have underperformed the broader market, with the iShares U.S. Medical Devices ETF up only 1% in the past year.
• Medtronic, a dividend aristocrat, has shown decent organic revenue growth in the last five quarters, but the stock price continues to sag.
• With EPS growth expected in FY 2025, I highlight key price levels on the chart to monitor ahead of Q4 2024 results next week.

Shares of medical device stocks continue to sag compared to the broader market. The iShares U.S. Medical Devices ETF (IHI) is up just 1% (total return) over the past 12 months compared to a better than 20% performance by the S&P 500. Healthcare sector stalwarts Eli Lilly (LLY) at home and Novo Nordisk (NVO) abroad have powered higher on the back of GLP-1 weight-loss drugs. Still, the bar is somewhat low for out-of-favor industries, such as the medical device niche. ...

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