{"id":86747,"date":"2023-11-20T17:20:13","date_gmt":"2023-11-20T22:20:13","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/after-a-6-rise-this-month-should-you-pick-medtronic-stock-ahead-of-its-q2\/"},"modified":"2023-11-20T17:20:14","modified_gmt":"2023-11-20T22:20:14","slug":"after-a-6-rise-this-month-should-you-pick-medtronic-stock-ahead-of-its-q2","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=86747","title":{"rendered":"After A 6% Rise This Month Should You Pick Medtronic Stock Ahead Of Its Q2?"},"content":{"rendered":"
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Medtronic (NYSE: MDT) is scheduled to report its fiscal 2024 second-quarter results on Tuesday, November 21. We expect Medtronic
\n MDT
\n <\/fbs-ticker> stock to trade sideways post-Q2 results announcement, with its revenues and earnings expected to miss the street estimates marginally. The company should continue to benefit from its new products and a better pricing environment. So, what are some trends likely to drive Medtronic\u2019s results, and how has the company\u2019s stock performed?<\/p>\n

MDT stock has suffered a sharp decline of 35% from levels of $115 in early January 2021 to around $75 now, vs. an increase of about 20% for the S&P 500 over this roughly 3-year period. Notably, MDT stock has underperformed the broader market in each of the last 3 years. Returns for the stock were -12% in 2021, -25% in 2022, and -4% in 2023. In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 18% in 2023 – indicating that MDT underperformed the S&P<\/strong> in 2021, 2022, and 2023.<\/p>\n

In fact, consistently beating the S&P 500<\/strong> – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Health Care sector, including LLY, UNH, and JNJ, and even for the megacap stars GOOG, TSLA, and MSFT.<\/p>\n

In contrast, the Trefis High Quality Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year<\/strong> over the same period. Why is that?<\/strong> As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index, less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.<\/p>\n

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Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could MDT face a similar situation as it did in 2021, 2022, and 2023 and underperform the S&P<\/strong> over the next 12 months – or will it see a recovery? Our forecast indicates that MDT stock is undervalued, as discussed below.<\/p>\n

(1) Diabetes Segment To Drive Sales<\/strong><\/p>\n