We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Medtronic's Mazor Robotics Aid Growth, Rising Costs Ail
Read MoreHide Full Article
On Feb 28, we issued an updated research report on Medtronic plc (MDT - Free Report) . While we are encouraged by the company’s globally accepted advanced therapies, its escalating costs and expenses, however, raise concerns. The stock has a Zacks Rank #3 (Hold).
Over the past six months, shares of Medtronic have outperformed the industry. The stock has rallied 15.5% compared with its industry’s 7.2% rise.
Medtronic posted better-than-expected earnings in third-quarter fiscal 2019. All major business groups contributed to solid top-line growth at CER, which highlighted sustainability across groups and regions in addition to displaying a successful achievement of synergy targets. We are encouraged by the company’s solid growth trend in the United States after adjusting for its divestitures as well as a healthy global acceptance of its advanced therapies.
This apart, the company has been seeing certain favorable developments in its Diabetes business. Medtronic is highly positive about its foray into the $1-billion standalone CGM market with its Guardian Connect.
Meanwhile, we are optimistic about the recently-closed acquisition of Mazor Robotics, which is expected to fortify Medtronic's position in spine surgery space. Following the completion of this transaction, the company has launched the Mazor X Stealth Edition robotics guidance platform in January and has already received a positive feedback for this combination of best-in-class robotics and navigation capability.
Also, the gradually stabilizing Cardiac Rhythm & Heart Failure (CRHF) market holds a lot of promise. Although, in the reported quarter, the company registered a year-over-year loss in this business, there was mid-single-digit growth in pacemakers, banking on the strength of Micra transcatheter pacing system and the Azure wireless pacemaker.
We are currently hopeful about the company’s newly-launched restructuring initiative called Enterprise Excellence plan, aimed at $3-billion annual growth run rate savings by the end of fiscal 2022. Per the company, this new program has been designed to increase its effectiveness and enabled reinvestment for growth along with driving a consistent margin expansion and EPS leverage.
On the flip side, the company has been grappling with steep costs and expenses, weighing heavily on its bottom line.
ABIOMED’s long-term earnings growth rate is expected to be 27.67%.
Varian’s long-term earnings growth rate is projected to be 8.00%.
Masimo’s long-term earnings is projected to grow 15.60%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
Image: Bigstock
Medtronic's Mazor Robotics Aid Growth, Rising Costs Ail
On Feb 28, we issued an updated research report on Medtronic plc (MDT - Free Report) . While we are encouraged by the company’s globally accepted advanced therapies, its escalating costs and expenses, however, raise concerns. The stock has a Zacks Rank #3 (Hold).
Over the past six months, shares of Medtronic have outperformed the industry. The stock has rallied 15.5% compared with its industry’s 7.2% rise.
Medtronic posted better-than-expected earnings in third-quarter fiscal 2019. All major business groups contributed to solid top-line growth at CER, which highlighted sustainability across groups and regions in addition to displaying a successful achievement of synergy targets. We are encouraged by the company’s solid growth trend in the United States after adjusting for its divestitures as well as a healthy global acceptance of its advanced therapies.
Medtronic PLC Price
Medtronic PLC Price | Medtronic PLC Quote
This apart, the company has been seeing certain favorable developments in its Diabetes business. Medtronic is highly positive about its foray into the $1-billion standalone CGM market with its Guardian Connect.
Meanwhile, we are optimistic about the recently-closed acquisition of Mazor Robotics, which is expected to fortify Medtronic's position in spine surgery space. Following the completion of this transaction, the company has launched the Mazor X Stealth Edition robotics guidance platform in January and has already received a positive feedback for this combination of best-in-class robotics and navigation capability.
Also, the gradually stabilizing Cardiac Rhythm & Heart Failure (CRHF) market holds a lot of promise. Although, in the reported quarter, the company registered a year-over-year loss in this business, there was mid-single-digit growth in pacemakers, banking on the strength of Micra transcatheter pacing system and the Azure wireless pacemaker.
We are currently hopeful about the company’s newly-launched restructuring initiative called Enterprise Excellence plan, aimed at $3-billion annual growth run rate savings by the end of fiscal 2022. Per the company, this new program has been designed to increase its effectiveness and enabled reinvestment for growth along with driving a consistent margin expansion and EPS leverage.
On the flip side, the company has been grappling with steep costs and expenses, weighing heavily on its bottom line.
Key Picks
Some better-ranked stocks in the broader medical space are ABIOMED, Inc., , Varian Medical Systems, Inc. and Masimo, Inc. (MASI - Free Report) . Notably, each stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ABIOMED’s long-term earnings growth rate is expected to be 27.67%.
Varian’s long-term earnings growth rate is projected to be 8.00%.
Masimo’s long-term earnings is projected to grow 15.60%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>