NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, compelling growth in net income, notable return on equity and attractive valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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Highlights from the ratings report include:
- MDT's revenue growth has slightly outpaced the industry average of 6.2%. Since the same quarter one year prior, revenues slightly increased by 0.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MEDTRONIC INC has improved earnings per share by 18.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, MEDTRONIC INC increased its bottom line by earning $3.23 versus $2.84 in the prior year. This year, the market expects an improvement in earnings ($3.66 versus $3.23).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 27.7% when compared to the same quarter one year prior, rising from $776.00 million to $991.00 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, MEDTRONIC INC's return on equity exceeds that of both the industry average and the S&P 500.
Medtronic, Inc. manufactures and sells device-based medical therapies worldwide. The company has a P/E ratio of 11.9, equal to the average health services industry P/E ratioand below the S&P 500 P/E ratio of 17.7. Medtronic has a market cap of $39.97 billion and is part of the
industry. Shares are up 0.4% year to date as of the close of trading on Wednesday.
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--Written by a member of TheStreet Ratings Staff.
TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.