The Bullish Case for Medtronic

NYSE: MDT | Medtronic PLC News, Ratings, and Charts

MDT – An ascending triangle has formed in the chart of Medtronic PLC (MDT). Since this is a bullish pattern, if the resistance level is broken, the stock could soon breakout. Read more to learn how to take advantage of this trade.

An ascending triangle pattern has formed in the chart of Medtronic PLC (MDT).  This is a bullish pattern and if the resistance level is broken, a breakout could occur.

MDT is one of the largest medical device companies in the world. The company develops and manufactures therapeutic medical devices for chronic diseases. Its portfolio includes pacemakers, defibrillators, heart valves, stents, insulin pumps, spinal fixation devices, neurovascular products, and surgical tools.

MDT is recovering from the pandemic and posted growth in the fiscal third quarter 2021. The company saw demand for its ventilators increase during the pandemic and is winning share in an increasing number of its business segments. It has also benefited from recent product approvals in its pipeline.

MDT had $5.1 in cash as of the most recent quarter, compared with $3.8 billion in short term obligations. It also has a gross margin of 64.6%, higher than its industry average. The company reported its latest financial results yesterday with revenue coming in at $7.78 billion, up from $7.65 billion in the previous quarter.

The stock has a trailing P/E of 43.42, but a forward P/E of 19.38, indicating it may be undervalued when looking at future earnings. The stock has been trending upward since May and has shown mixed near-term momentum. It currently has an overall rating of B, which translates into a Buy in our POWR Ratings system.

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

  Chart of MDT provided by TradingView

Over the past two months, MDT has hit the $120 resistance (red) on multiple occasions. In addition, the stock has started a trend line of support (green) at the end of January. Together, these two lines have formed an ascending triangle.

Eventually, the stock will have to break either the $120 resistance or the trendline.  A long trade could be made on a break above $120.

Want to Discover More Great Trades?

I have explored virtually every flavor of technical analysis and chart pattern known to mankind. The sad fact is that the vast majority of them don’t work at all.

That is why I recently put together this special report to help investors focus on the only 5 chart patterns that matter…the ones that lead to the most timely and profitable stock trades. Click below to get your copy now!

5 WINNING Stock Chart Patterns

Have a good trading day!

Good luck!

Christian Tharp, CMT

@cmtstockcoach


MDT shares rose $0.93 (+0.79%) in premarket trading Wednesday. Year-to-date, MDT has gained 1.53%, versus a 3.45% rise in the benchmark S&P 500 index during the same period.


About the Author: christian


Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
MDTGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

2022 Stock Market Outlook

The stock market (SPY) continued on its bullish path in 2021. Will that continue in 2022? And what could happen to awaken the bear market from hibernation? 40 year investment veteran Steve Reitmeister explores this and more in his “2022 Stock Market Outlook” which includes his top 12 stocks for the year ahead. Read on for full details below...

:  |  News, Ratings, and Charts

3 Undervalued Energy Stocks to Buy as Oil Approaches $80

Given strong demand and years of underinvestment in new production, energy stocks are likely to keep outperforming in 2022. Many have very favorable valuations, and value stocks tend to outperform in environments with rising rates and growth. Therefore, investors should consider buying TransGlobe Energy (TGA), Apache (APA), and Ovintiv (OVV).

:  |  News, Ratings, and Charts

100 Best Stocks for 2022

2022 is a key year for investors. The easy money from the start of the current bull market via the S&P 500 (SPY) has already come and gone. Now gains for the average investor will slow down...but who wants to be average? The path to outperformance just became easier with our listing of the 100 best stocks for 2022. Get full details below...

:  |  News, Ratings, and Charts

3 Chip Stocks to Buy Now that Power the Metaverse

The term ‘metaverse’ is the latest tech buzzword on everyone's lips. Investors seem excited about the potential it holds, and tech giants continue to invest heavily to develop metaverse. Given this backdrop, we think it could be wise to add quality semiconductor chip stocks NVIDIA (NVDA), Intel (INTC), and Micron Technology (MU) because they are likely to play a significant role in metaverse infrastructure. Read on.

:  |  News, Ratings, and Charts

100 Best Stocks for 2022

2022 is a key year for investors. The easy money from the start of the current bull market via the S&P 500 (SPY) has already come and gone. Now gains for the average investor will slow down...but who wants to be average? The path to outperformance just became easier with our listing of the 100 best stocks for 2022. Get full details below...

Read More Stories

More Medtronic PLC (MDT) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All MDT News