Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, medical-device giant Medtronic
With that in mind, let's take a closer look at Medtronic's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Minneapolis (1949)|
|Market Cap||$41.12 billion|
|Industry||Health care equipment|
|Trailing-12-Month Revenue||$15.72 billion|
|Management||Chairman/CEO William Hawkins, III
CFO Gary Ellis
|Return on Equity (Average, Past 3 Years)||18.8%|
|Cash/Debt||$3.54 billion / $10.56 billion|
Johnson & Johnson
St. Jude Medical
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 1,649 members who have rated Medtronic believe the stock will outperform the S&P 500 going forward. These bulls include chucksauce and Motley Fool Rising Star Bryan Hinmon (TMF42).
Late last year, chucksauce tapped Medtronic as a particularly healthy choice: "Innovative, market leader, willing to invest a considerable amount of its cash to R&D to make sure it stays on top. Will recover with the industry over the next 5+ yrs."
Currently, Medtronic trades with a forward P/E of 10.5. That's a discount to rivals Boston Scientific (14.5), Johnson & Johnson (11.8), and St. Jude (11.3), as well as other medical device plays like Intuitive Surgical
(1) Size matters: [Medtronic] has an edge in global distribution and prowess/experience in appeasing health regulators for efficacy data. (2) R&D: [Medtronic] spends consistently more on R&D than its peers and links bonuses with R&D success. (3) [Medtronic] has plenty of room to run internationally, with only 40% of sales from abroad and only 7% from emerging markets. (4) Aging population and western medicine spreading. (5) It's cheap! Cash flows are strong and the market is too pessimistic.
What do you think about Medtronic, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool Options has recommended a diagonal call position on Johnson & Johnson, which is a Motley Fool Inside Value and Income Investor pick. Intuitive Surgical is a Rule Breakers pick. Motley Fool Alpha owns shares of Johnson & Johnson. The Fool owns shares of Medtronic, Johnson & Johnson, and Zimmer. Try any of our Foolish newsletter services free for 30 days.
We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.