5-Star Stocks Poised to Pop: Medtronic

Updated

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

$40.6 billion

Industry

Health-care equipment

Trailing-12-Month Revenue

$16.4 billion

Management

Chairman/CEO Omar Ishrak
CFO Gary Ellis

Return on Equity (Average, Past 3 Years)

20%

Cash/Debt

$2.17 billion / $10.3 billion

Dividend Yield

2.5%

Competitors

Boston Scientific
Johnson & Johnson
St. Jude Medical

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 1,802 members who have rated Medtronic believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, troym72, highlighted the stock as a healthy bargain pick:

Medtronic's stock has been somewhat over slashed by the market downturn this [past summer] -- I hesitate to call it a crash -- and I think the stock is headed to the mid 50s by the end of 2012. Forward earnings supports a mid 50s share price and Medtronic's dividend yield is near 2% to boot. I think this makes Medtronic an easy thumbs up since I've heard no bad news recently.

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!

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The 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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