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International Revenue Growth Makes Medtronic (MDT) An Attractive Investment For Conservative Investors

Medtronic PLC investors have been content with receiving dividends on their holdings for a few years now. The stock has hardly gone anywhere except for a post-covid rally that saw the stock price reach as high as $131. Lately, there has been some renewed optimism in the stock’s performance, fueled by its medium-term growth prospects.

Medtronic (MDT) is a global medical technology leader specializing in designing, developing, and manufacturing medical devices. Founded in 1975 and with operational headquarters in Minneapolis, the company integrates advanced technologies like data analytics and artificial intelligence to improve healthcare for patients with more than 70 health conditions.

The company’s key products include cardiac devices like pacemakers and defibrillators, tools for diabetes management including insulin pumps and continuous glucose monitors, neuromodulation devices for chronic pain and movement disorders, and robotic surgical systems. It also provides biological solutions for the dental market.

The company caters to various end markets in more than 150 countries from Asia, Europe, the Americas, the Middle East, and Africa. It primarily targets patients undergoing treatment for chronic conditions such as heart disease, diabetes, and neurological disorders, while its top clients are hospitals, healthcare providers, and government healthcare programs.

The most recent quarter saw Medtronic increase its total revenue by 5.3% YoY. With its revenue sources spread relatively evenly among the Surgical, Neuroscience, and Cardiovascular segments with a little bit of Diabetes care, the company has achieved this growth across all segments. Moreover, the company generates 48% of its revenue from its international operations.

It was this international operations segment that attracted investor attraction, partly causing its short rally so far. The international business grew at 6.5% while the US portion grew at 4.1%.

What’s even better is that the company didn’t have to sacrifice its margins to achieve this topline growth. Its gross margins grew by 0.3% while the operating margins grew by 0.6% in the most recent quarter. The cost efficiencies have finally resulted in improved profitability, which wasn’t bad at all to begin with.

Investors are bracing for a bull rally as all the pieces start to fall into place. If the next earnings report on the 19th of November confirms the international growth and strong margins, it could spur a new rally. Conservative investors will find their beloved downside safety in the fact that the company is sitting on $7.8 billion in cash and short-term investments. At a 53% payout ratio and 47 consecutive years of dividend raises, there is no question mark on the management’s willingness to keep paying dividends.

Medtronic is not on our latest list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held MDT at the end of the second quarter which was 54 in the previous quarter. While we acknowledge the potential of MDT as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as MDT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None. This article was originally published at Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
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Trump has made it clear: Europe and U.S. allies must buy American LNG.

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As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

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AI needs energy. Energy needs infrastructure.

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This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

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The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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  • The AI infrastructure supercycle
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  • A surge in U.S. LNG exports
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Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

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Should I put my money in Artificial Intelligence?

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But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…