Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Medtronic ( MDT) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Medtronic as such a stock due to the following factors:

  • MDT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $332.9 million.
  • MDT has a PE ratio of 31.
  • MDT is currently in the upper 30% of its 1-year range.
  • MDT is in the upper 25% of its 20-day range.
  • MDT is in the upper 35% of its 5-day range.
  • MDT is currently trading above yesterday's high.
  • MDT has experienced a gap between today's open and yesterday's close of 0.7%.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.

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More details on MDT:

Medtronic plc manufactures and sells device-based medical therapies worldwide. The stock currently has a dividend yield of 2%. MDT has a PE ratio of 31. Currently there are 13 analysts that rate Medtronic a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Medtronic has been 5.3 million shares per day over the past 30 days. Medtronic has a market cap of $107.7 billion and is part of the health care sector and health services industry. Shares are up 4.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Medtronic as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • MDT's very impressive revenue growth greatly exceeded the industry average of 26.3%. Since the same quarter one year prior, revenues leaped by 60.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.68, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with this, the company maintains a quick ratio of 2.68, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has increased to $1,912.00 million or 43.97% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -3.96%.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

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