5 Best Medical Device Stocks To Buy Now

4. Medtronic plc (NYSE:MDT)

Forward P/E ratio as of December 10: 14.68

Number of Hedge Fund Holders: 55

Medtronic plc (NYSE:MDT) is among the largest technology companies that develop and manufacture medical devices for the healthcare sector. The product portfolio of the company comprises pacemakers, defibrillators, stents, heart valves, neurovascular products, spinal fixation devices,  insulin pumps, advanced energy, and surgical tools.

On November 30, 2022, Larry Biegelsen, an analyst at Wells Fargo, reduced his price target on Medtronic plc (NYSE:MDT) to $77 from $82 while keeping an Equal Weight rating on the stock. The analyst revised his EPS forecast after adjusting for the company’s expected FX impact on earnings in 2024.

55 hedge funds are currently bullish on Medtronic plc (NYSE:MDT) as per Insider Monkey’s database.

Here is what Artisan Partners specifically said about Medtronic plc (NYSE:MDT) in its Q2 2022 investor letter:

While Medtronic plc (NYSE:MDT)’s procedure volumes recovered to pre-COVID levels, foreign exchange headwinds overshadowed underlying business value growth, and supply chain issues, including those related to China’s lockdowns, impacted the surgical innovations business. The downdraft in the market during the quarter led to a pile-on. We are being patient with our investment in Medtronic because the company continues to be a strong free cash flow generator and is attractively priced, with a FCF yield of 5% on trailing one-year numbers and a dividend yield of 3%. Medtronic is under new management that is focused on growing the company’s top line, reinvesting in R&D, returning cash to shareholders and growing operating profits. We like new management’s strategy and believe new product launches, increased surgery visits, sound M&A transactions and a shareholder returns focus, should reinvigorate the business. We added to our positions in these health care names during the quarter.