Low Expectations Could Fuel More Upside for Medtronic Stock

Medtronic shares are outperforming on the charts, even with analysts saying 'hold'

May 31, 2017 at 10:32 AM
facebook X logo linkedin

Shares of Medtronic PLC (NYSE: MDT) hit a 2017 high after the medical device maker reported better-than-expected earnings and raised its full-year forecast last week. MDT stock is now boasting a more than 19% year-to-date lead. Despite these sound technical and fundamental backdrops, expectations remain low -- which could translate into buying power once the skepticism begins to unwind.


For starters, almost half of the 20 covering analysts maintain a tepid "hold" recommendation. This leaves the door wide open for a round of upgrades, which could help draw more buyers to MDT's table.

Elsewhere, the stock's top-heavy 50-day put/call volume ratio of 1.09 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks 2 percentage points from a 52-week peak -- meaning puts have been bought to open relative to calls at a near-annual-high clip. A capitulation from some of the weaker bearish hands could help boost the stock.

Plus, MDT's Schaeffer's Volatility Index (SVI) of 13% ranks below 92% of all comparable readings taken in the past year, meaning low volatility expectations are being priced into short-term options -- a potential boon to premium buyers.

Subscribers to Schaeffer's Weekend Trader Series options recommendation service received this MDT commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI