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Medtronic (MDT) Undertakes Investment to Advance STEM Education

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Medtronic plc’s (MDT - Free Report) Medtronic Foundation recently announced 13 new partnerships with prominent organizations in Minnesota, Northern California and Puerto Rico that support underrepresented and underserved K-12 students. These partnerships are anticipated to address the principal cause of inequities by establishing economic advancement opportunities and enhancing lives through Science, Technology, Engineering and Math (STEM) education.

The new STEM partnerships include the ones with 10,000 degrees, Career Technical Education Foundation and Ciencia, to name a few.

The partnerships are part of the Medtronic Foundation’s larger effort to increase its focus on STEM and promote equity and representation to enhance the lives of underserved communities. This expands on current community health collaborations in these key sites with the Northern California Center for Well-Being and HealthFinders Collaborative.

More on the Collaboration

The Medtronic Foundation will invest approximately $4 million within a two-year period to collectively serve above 60,000 underserved and underrepresented students spanning three priority locations (as mentioned above). Additionally, Medtronic’s employee volunteers will collaborate with each organization to deploy employee talent through mentorship to students and other skilled volunteerism.

Management at Project Lead The Way is upbeat about their recent partnership with Medtronic employee volunteers as they anticipate the significant investment from the Medtronic Foundation to positively impact student outcomes by providing them with the key subject matter and transferrable skills.

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As long-lasting, community-driven reforms begin locally, management at the Medtronic Foundation believes that its partners trust communities and have the required experience to lead transformative change in STEM education.

Industry Prospects

Per a report published in Mordor Intelligence, the K-12 Education Market is expected to see a CAGR of 31.6% during the forecast period of 2021 to 2026 on the back of greater emphasis on basic STEM education in schools worldwide. Given the market prospects, the recent investment by the Medtronic Foundation to advance STEM education comes at an opportune time.

Other Notable Developments

Medtronic engaged in a number of significant developments this month.

The company announced three-month favorable results from an on-label, prospective, multi-center study showing meaningful pain relief using DTM SCS endurance therapy. Modeling based on actual three-month data demonstrates that DTM SCS endurance therapy allows 5.5-7.5 years of device longevity when programmed on the Vanta recharge-free neurostimulator.

Medtronic’s Micra AV Transcatheter Pacing System (TPS) was approved for sale and reimbursement by Japan's Ministry of Health, Labor and Welfare. The Micra AV is used to treat patients who have an atrioventricular block. It delivers the benefits of leadless pacing to a greater number of patients. Medtronic is set to launch the product this month.

The company also entered into a definitive agreement to acquire Affera, Inc. This acquisition broadens Medtronic’s advanced cardiac ablation portfolio to address physician needs in a growing patient population with cardiac arrhythmias. The acquisition is anticipated to close during the first half of Medtronic’s fiscal year 2023, subject to fulfillment of certain customary closing conditions.

Share Price Performance

The stock has outperformed its industry over the year. It has declined 9.7% compared with the industry’s 14.5% fall.

Zacks Rank and Key Picks

Currently, Medtronic carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the Medical-Products industry that investors can consider are Baxter International Inc. (BAX - Free Report) , Owens & Minor, Inc. (OMI - Free Report) and Apyx Medical Corporation (APYX - Free Report) .

Baxter, currently carrying a Zacks Rank #1 (Strong Buy), has a long-term earnings growth rate of 9.5%. Baxter’s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 10.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

Baxter has outperformed the industry over the past year. BAX has gained 8.1% against a 12.6% decline of the industry in the said period.

Owens & Minor, carrying a Zacks Rank #2 (Buy) at present, has a long-term earnings growth rate of 23.6%. The company surpassed earnings estimates in the trailing four quarters, delivering an average surprise of 32.4%.

Owens & Minor has outperformed the industry over the past year. OMI has gained 49.8% against the industry’s 14.5% drop over the past year.

Apyx Medical, carrying a Zacks Rank #2, has a long-term earnings growth rate of 40%. The company’s earnings surpassed estimates in three of the trailing four quarters and met estimates on another occasion, delivering an average surprise of 25.9%.

Apyx Medical has outperformed the industry over the past year. APYX fell 2% compared with the industry’s 14.5% slump over the past year.