How Is Medtronic's Stock Performance Compared to Other Medical Devices Stocks?

MDT +0.30%

Galway, Ireland-based Medtronic plc (MDT) develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients. Valued at $134.7 billion by market cap, the company's principal products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, heart failure management, heart valve replacement, malignant and non-malignant pain, and movement disorders.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and MDT perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the medical devices industry. MDT's global presence and wide product range, covering chronic diseases like diabetes, cardiovascular conditions, and neurological disorders, are its key strengths. With around half of sales coming from international markets, the company has a diverse geographic reach that helps mitigate economic risks, reducing its dependence on any one product or market.

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Despite its notable strength, MDT shares touched their 52-week high of $106.33 in the last trading session. Over the past three months, MDT stock gained 13.9%, outperforming the iShares U.S. Medical Devices ETF’s (IHI) 3.4% gains during the same time frame.

In the longer term, shares of MDT rose 31.5% on a YTD basis and climbed 22.6% over the past 52 weeks, outperforming IHI’s YTD gains of 10.3% and 6% returns over the last year.

To confirm the bullish trend, MDT has been trading above its 50-day moving average since early June, with some fluctuations. The stock has been trading above its 200-day moving average since late June, with slight fluctuations.

On Nov. 18, MDT shares closed up more than 4% after reporting its Q2 results. Its adjusted EPS of $1.36 exceeded Wall Street expectations of $1.31. The company’s revenue was $9 billion, surpassing Wall Street's $8.9 billion forecast. MDT expects full-year adjusted EPS in the range of $5.62 to $5.66.

In the competitive arena of medical devices, Abbott Laboratories (ABT) has lagged behind the stock, with a 13.6% gain on a YTD basis and 9% uptick over the past 52 weeks.

Wall Street analysts are reasonably bullish on MDT’s prospects. The stock has a consensus “Moderate Buy” rating from the 30 analysts covering it, and the mean price target of $111.42 suggests a potential upside of 6.1% from current price levels.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com