Is a Breakout in the Charts for Medtronic (MDT)?

As one of the largest medical device companies, Medtronic Plc (MDT) develops and manufactures therapeutic medical devices for chronic diseases. Its portfolio includes pacemakers, defibrillators, heart valves, stents, insulin pumps, spinal fixation devices, neurovascular products, advanced energy, and surgical tools…

Medtronic Plc (MDT) has staged a strong recovery from the impact of the pandemic on elective procedures. MDT is now winning market share in an increasing number of its businesses, driven by differentiated product offerings. For instance, in its Cranial & Spinal Technologies business, the company has gained market share in both Spine and neurosurgery.

MDT has a solid balance sheet with a current ratio of 2.7 and a debt-to-equity ratio of 0.5. The company also has a gross margin of 65.2%, which is above the industry average. In terms of growth, analysts forecast earnings to rise 112.9% year over year in the current quarter.

MDT’s stock looks a bit overpriced with a forward P/E of 22.47. The stock has shown strong long-term momentum since last summer, but performance has been mixed since May as shown in the chart below.

Take a look at the 1-year chart of MDT below with my added notations…

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