Medtronic 2024: What to Expect
Medtronic (NYSE:MDT) had a volatile 2023 and had an earlier few rough years of under performance. As we head into 2024, Truist Securities expects a positive outlook amid dwindling recession fears, a downward rate bias/perception, more pragmatic GLP1 overhang/impact, and an attractive sector growth profile. Baird also has a positive outlook despite concerns of GLP-1, election year, and general macro uncertainties, but the valuation is already embedded in those concerns. BTIG and Piper have a neutral outlook on the medical device company.
2023 Stock Performance
Medtronic has risen just 4.68% in 2023, however, the stock has still managed to outperform the S&P 500 healthcare sector which is down 0.44% in 2023, but underperformed S&P 500 which gained 24.33% in 2023. The stock had a great run in the first half of 2023, having gained almost 12.5%, but fell much below the 2023 opening price in 3Q23 owing to GLP1 concerns, unemployment, and insurance access hit, however, the stock has posted a strong comeback later in the year on an improving rate outlook and carefully monitoring GLP1 impact.
What Quantitative Measures Say
Medtronic (MDT) receives a Hold rating and a score of 3.39 from Seeking Alpha's Quant Rating system. This comes in large part due to a D grade in the category of growth. The stock also receives a D+ for valuation. Countering this somewhat are high grades in other areas. MDT receives an A+ for profitability and a B+ for revisions.
What Analyst Says
SA Analysts have a buy rating of 4.00 score.
SA author The Beginner Investor predicted that MDT could offer a remarkable 130.3% increase through diverse analytical approaches model and 26.7% annul return through resilient financial performance conservative second model."
Another SA Author Juxtaposed Ideas believes that the Market has overemphasized the potential negative impacts of GLP-1 drugs on conventional diabetes care since there is no miracle one-time drug. The analyst expects the stock to get closer to its pre-pandemic averages once the macroeconomic outlook normalizes, and assigns Buy rating with a long-term PT of $101.20.
Wall Street analysts echo SA analyst view and have assigned a buy rating with a 3.75 score. Of the 33 analysts surveyed by Seeking Alpha in the past 90 days, 12 of them have a Strong Buy rating and five have a Buy rating. That means nearly half of the analyst community sees the stock in an upbeat light.
Latest Earnings
In its last earnings report, Medtronic (MDT) reported Q2 results that topped expectations. The Ireland-based medical device maker increased its full-year outlook on Tuesday after reporting better than expected Q2 FY24 financials, thanks mainly to its diabetes segment, despite headwinds related to weight loss drugs.
Earnings Predictions
Looking ahead, MDT predicted that its total revenue for the third quarter will be 2.9% higher than last year's quarter. Meanwhile, analysts expect the company to report normalized EPS of $1.26 for the current quarter.