MDT

Medtronic (MDT) declined 2.09% in recent trading, underperforming the S&P 500's 0.41% gain. The medical device company is expected to report earnings of $1.34 per share (down 1.47% YoY) with quarterly revenue projected at $9.47 billion (up 5.66% YoY). MDT holds a Zacks Rank #3 (Hold) rating and trades at a Forward P/E of 15.85, below its industry average of 20.56.

Medtronic is one year away from achieving Dividend King status with 49 consecutive years of dividend increases. An investor would need approximately 348 shares (costing ~$32,792) to generate $1,000 in annual dividend income at the current 3% yield. The recent MiniMed spinoff positions Medtronic to focus on higher-margin businesses, potentially enabling larger dividend increases and earnings growth of 7-8% in coming years.

Medtronic is expanding its presence in high-growth markets including cardiac ablation (up 88%), robotics, and structural heart, while advancing the MiniMed separation. The company is building its hypertension business through the Symplicity Spyral renal denervation franchise with improved reimbursement and clinical evidence. However, Medtronic faces headwinds from tariffs, inflation, currency fluctuations, and unfavorable product mix that could pressure margins.

Medtronic stock closed up 1.17% at $93.01, outperforming the broader market decline. The company is expected to report quarterly EPS of $1.34 (down 1.47% YoY) and revenue of $9.47 billion (up 5.66% YoY). With a Zacks Rank of #3 (Hold) and a Forward P/E of 15.38 (below industry average of 19.61), MDT trades at a valuation discount despite modest earnings headwinds.

The article recommends four healthcare stocks across two key niches: GLP-1 weight-loss drugs (Eli Lilly and Novo Nordisk) and surgical robotics (Intuitive Surgical and Medtronic). Eli Lilly leads in GLP-1 but faces patent expiration risks, while Novo Nordisk is a turnaround story with attractive valuation. Intuitive Surgical dominates surgical robotics with strong recurring revenue, while Medtronic offers a diversified play with dividend appeal as it launches its Hugo surgical robot.

As inflation concerns persist amid Middle East geopolitical tensions and rising energy prices, healthcare stocks are positioned as defensive investments. Medtronic, a turnaround story with strong dividend history and accelerating growth, appeals to value investors.

Eli Lilly, a GLP-1 drug leader expanding its pipeline, offers growth potential. Both companies benefit from healthcare's historical resilience to inflation.

Medtronic (MDT) closed at $87.97, up 1.84% in recent trading. The medical device company is projected to report EPS of $1.34 (down 1.47% YoY) and revenue of $9.47 billion (up 5.63% YoY).

For the full year, analysts expect EPS of $5.98 and revenue of $38.96 billion. MDT carries a Zacks Rank #3 (Hold) with a Forward P/E of 14.45, trading at a discount to its industry average of 19.67.

Despite recent Fed rate hikes and rising Treasury yields, the article recommends two blue chip dividend stocks: AbbVie, a Dividend King with 53 consecutive years of dividend increases and strong growth prospects from new drugs, and Medtronic, which is on track to become a Dividend King with 49 consecutive years of dividend hikes and improving operational performance after recent restructuring.

The author recommends two high-yield dividend stocks for October: Medtronic (MDT), which has completed a business overhaul and is approaching Dividend King status with a 3.3% yield, and McCormick (MKC), a consumer staples company with 39 years of dividend increases and a 4.2% yield that is acquiring Unilever's food business to roughly double its sales.

As Wall Street anticipates potential Fed rate hikes, healthcare stocks are positioned to weather economic uncertainty better than other sectors. Three healthcare companies—Eli Lilly, Medtronic, and Johnson & Johnson—are highlighted as resilient investments due to their strong fundamentals, diversified portfolios, and proven ability to generate growth regardless of interest rate environment.

Medtronic reported strong Q1 fiscal 2027 results with adjusted EPS of $1.45 (up 15.1% YoY) and revenues of $9.76 billion (up 13.7% YoY), both beating consensus estimates. The company raised full-year organic revenue growth guidance to 7.25%-7.75% and adjusted EPS guidance to $5.94-$6.00.

However, shares have declined 6.4% since the earnings report, underperforming the S&P 500. Analyst estimates have trended downward post-earnings, and the stock carries a Zacks Rank #3 (Hold) rating.

Medtronic (MDT) receives a #3 (Hold) rating on the Zacks Rank with a VGM Score of B. The company shows attractive valuation metrics with a forward P/E ratio of 14.56 and has seen 10 analyst earnings estimate revisions higher in the last 60 days, with consensus estimates increasing to $5.98 per share and an average earnings surprise of +2.8%.

Medtronic stock fell 2.69% on September 29, 2026, outpacing the broader market decline. The company faces a projected EPS decline of 1.47% for the upcoming quarter, though full-year earnings are expected to grow 8.14%. The stock trades at a Forward P/E of 14.97, below its industry average, and holds a Zacks Rank of #3 (Hold).

The global digital health and remote patient monitoring market is projected to grow from $26.8 billion in 2025 to $80.8 billion by 2031, expanding at a 20.2% CAGR. Growth is driven by rising chronic disease management demand, expanding reimbursement coverage, and maturing wearable sensor technology, enabling a shift from episodic facility-centered care to continuous connected care models.

Dexcom's CONNECT trial results, published in The New England Journal of Medicine, demonstrate that its G7 continuous glucose monitoring system achieves a 1.6% A1C reduction in non-insulin-treated Type 2 diabetes patients, with 97% adherence at 26 weeks. The findings support broader CGM adoption and could expand market opportunities, though success depends on physician adoption and insurance coverage. The global CGM market is projected to grow from $13.4 billion in 2025 to $41.4 billion by 2033.

Stryker announced a $400 million preferred equity investment in CMR Surgical, gaining exclusive U.S. sales rights for the Versius robotic surgery platform and an option to acquire the company. The deal allows Stryker to expand into soft-tissue robotics, complementing its existing Mako orthopedic platform, while CMR Surgical retains global commercialization rights outside the U.S.

Intuitive Surgical (ISRG), the leader in surgical robotics, has fallen 30% from early 2025 highs but presents a strong buy opportunity with ~40% upside potential. The company demonstrates impressive fundamentals including double-digit earnings and revenue growth, a debt-free balance sheet, and strong free cash flow expansion. ISRG earned a Zacks Rank #2 (Buy) rating and is positioned for a technical breakout ahead of Q3 earnings.

Intuitive Surgical, the leader in surgical robotics, has fallen 30% from early 2025 highs but is poised for a technical breakout ahead of its Q3 earnings release on October 20. With strong fundamentals including double-digit earnings and revenue growth, a debt-free balance sheet, and ~43% upside potential to all-time highs, the stock earns a Zacks Rank #2 (Buy) rating. The company projects 15% Q3 revenue growth and 17% revenue growth for 2026.

Intuitive Surgical (ISRG) has gained nearly 12% in a month, outperforming the market ahead of Q3 earnings. The company benefits from strong da Vinci 5 adoption, growing Ion procedures, and expanding international markets.

However, slower U.S. procedure growth, GLP-1 drug competition affecting bariatric procedures, and China headwinds pose risks. ISRG trades at a premium 36.04X forward P/E but remains attractive with a Zacks Rank #2 (Buy) rating.