The pullback that could be observed for stocks in Medtronic plc for several weeks should continue over the coming trading sessions.
Strengths
● The group's high margin levels account for strong profits.
● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
● Analysts covering this company mostly recommend stock overweighting or purchase.
Weaknesses
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● The company is in debt and has limited leeway for investment
● Based on current prices, the company has particularly high valuation levels.
● With a 2020 P/E ratio at 29.22 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.
● For the past seven days, analysts have been lowering their EPS expectations for the company.
● For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.
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Medtronic plc is one of the world leaders in designing, manufacturing and marketing of medical equipment. Net sales break down by sector of activity as follows:
- general and minimally invasive surgery (28.8%): surgical equipment, intra-operative monitoring systems, ventilation systems, etc.;
- cardiac rhythm management (18.6%): implantable cardiac pacemakers, implantable defibrillators and automatic external defibrillators, cardiac ablation probes, etc.;
- vascular diseases and cardiac surgery (17.4%): coronary stents, endoprostheses for aortal pathologies, distal protection systems, catheters, heart valve prostheses, auto-transfusion equipment, cardiac ablation devices, etc.;
- spinal disorders (14.1%): spinal prostheses, disc prostheses, cerebral stimulation systems, bone graft technologies and mini-invasive spinal surgery, etc. The group also develops medical imagery-guided surgical navigation systems activity;
- neurovascular, ear, nose and throat (ENT) and pelvic diseases (8.2%);
- diabetes management (7.4%): internal and external glycemia monitoring systems and insulin pumps;
- neurological disorders (5.5%): neurostimulation and pumped medication administration products, diagnostic tools, etc.
Net sales are distributed geographically as follows: Ireland (0.3%), the United States (50.9%) and other (48.8%).