- MDT
- NVDA
- ISRG
Medtronic (NYSE: MDT) and Intuitive Surgical (NASDAQ: ISRG), two medical device leaders, haven’t performed well this year. While weakness in the broader healthcare sector hasn’t helped, they have both encountered company-specific issues that have contributed to their lagging the market. The good news is that there are solid reasons to think they can bounce back, but which one should investors consider right now?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
What‘s going on with Medtronic?
Medtronic has many qualities: A large medical device business with dozens of products across several therapeutic areas. The company has a deep footprint in the healthcare sector, a strong reputation, and it records consistent revenue and earnings. However, its most recent financial results have been mixed. In the fourth quarter of its fiscal year 2026, which ended on April 24, Medtronic’s revenue increased by 9.9% to $9.8 billion. The company’s adjusted earnings per share (EPS) were $1.55, a 4.3% decline due to higher costs from multiple sources, including tariffs.
Worse, the company’s guidance for the next fiscal year fell short of analysts’ expectations, sending the stock lower following its earnings release. Still, there are several things to be excited about. Medtronic posted its highest annual revenue growth in a decade during its last fiscal year.
It has addressed some of the top-line growth concerns investors had, partly thanks to its Pulse Field Ablation franchise. Further, the company launched new products that should eventually contribute to sales growth. Last year, Medtronic announced that the U.S. Food and Drug Administration had cleared its Hugo robotic-assisted surgery (RAS) system for urologic procedures, putting it in direct competition with Intuitive Surgical.
The RAS market is underpenetrated, and as Medtronic earns more indications for the Hugo system, it should eventually meaningfully impact its financial results. We could also see improved margins once it completes the spin-off of its lower-margin diabetes care division. Lastly, Medtronic is a phenomenal dividend stock, offering a forward yield of 3.4% and having increased its payouts for 49 consecutive years. It is a great pick for income-seeking investors.
