AAL

Analyst: Medtronic Stock's Future Growth is Doubtful

Now could be the time to speculate on Medtronic with options

Deputy Editor
Aug 24, 2022 at 10:14 AM
facebook X logo linkedin


Raymond James is losing confidence in the growth potential for Medtronic PLC (NYSE:MDT), according to a bear note the firm issued earlier today. The analyst downgraded MDT to "market perform" from "outperform," and while it expects the stock to stay range-bound, the note said: "Supply chain dynamics have disrupted MDT's growth more so than peers, and our concern is that it will take longer for MDT to regain momentum."

While Raymond James withheld a price target, Piper Sandler and Evercore ISI lowered their own price objectives to $105 and $90, respectively, last night. Coming into today, analysts were split on the equity, with nine of 18 calling Medtronic stock a "hold" versus nine that said "buy" or better. Meanwhile, the 12-month consensus target price of $109.29 is a 21.1% premium to last night's close. 

Those looking to bet on Medtronic stock's next move should consider options. The equity's Schaeffer's Volatility Index (SVI) of 23% stands in the relatively low 34th percentile of annual readings, which implies options traders are pricing in lower-than-usual volatility expectations. What's more, MDT's Schaeffer's Volatility Scorecard (SVS) tally of 74 out of 100 implies the equity tends to outperform said volatility expectations.

The equity is down 1% at $89.28 this morning. A mid-July bounce from more than two-year lows was just rejected at the 80-day moving average, with Medtronic stock yesterday shedding more than 3% for its worst session since June. Year-over-year, MDT sports a 29.8% deficit.

 

Same-Day Trading Power: +227% YTD and Counting  — Get in for $10!

We're celebrating 44 years of helping traders win, and you can now tap into one of our most explosive services — Dynamite Day Trading Signals — for just $10.

This service was built for one thing: capturing intraday gains with precision. 

Access two highly-vetted options trades each week -  Complete with defined entries, exits, and a clear plan for same-day profits.

👉 Click Here to Learn More and Position Yourself to Take Action When the Next Alert Hits.