5-Star Stocks Poised to Pop: Medtronic


Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, medical-device giant Medtronic (NYS: MDT) has earned a coveted five-star ranking.

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.

Medtronic facts

Headquarters (Founded)

Minneapolis (1949)

Market Cap

$37 billion


Healthcare equipment

Trailing-12-Month Revenue

$15.9 billion


Chairman/CEO Omar Ishrak
CFO Gary Ellis

Return on Equity (Average, Past 3 Years)



$2.4 billion / $9.8 billion

Dividend Yield



Boston Scientific (NYS: BSX)
Johnson & Johnson (NYS: JNJ)
St. Jude Medical (NYS: STJ)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 1,724 members who have rated Medtronic believe the stock will outperform the S&P 500 going forward. These bulls include PBallmiller and glenncv.

Earlier this year, PBallmiller touched on the booming trend working in Medtronic's favor: "They will be a great play on the aging of America."

Currently, Medtronic even sports a cheapish forward P/E of 9. That represents a discount to rivals like Boston Scientific (14), Johnson & Johnson (12), and St. Jude (12).

CAPS member glenncv elaborates on the bull case:

*MDT is a medical technology company with a rich pipeline. They use this pipeline to dominate market share in almost all of their segments that they compete in.
*This is nothing new, but our population is getting older and this is good news for MDT. It is estimated that the population that is in their 60's in the United States alone will increase from 18% to 25%.
*(In the financial department), while they have some debt on their balance sheet, their overall finance is pretty healthy. ....
* Sounds like a great company to me. Long MDT.

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!

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Medtronic and Johnson & Johnson. Motley Fool newsletter services have recommended buying shares of and creating a diagonal call position in Johnson & Johnson. 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.

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