3 Reasons to Buy Medtronic Stock Like There's No Tomorrow

Medtronic plc (NYSE: MDT) has been a beacon of innovation and growth in the medical device industry, consistently delivering value to shareholders and improving patient lives. As the company enters a new fiscal year, there are compelling reasons to consider adding MDT to your portfolio. Here are three reasons to buy Medtronic stock like there's no tomorrow:

1. Strong Financial Performance and Growth Trajectory

Medtronic has a proven track record of delivering robust financial performance, even in the face of economic downturns and global health crises. In its fiscal year 2024, the company reported:

* Revenue of $32.4 billion, up 3.6% as reported and 5.2% on an organic basis
* GAAP diluted EPS of $2.76, up 2% year over year
* Non-GAAP diluted EPS of $5.20, up 2% year over year
* Cash from operations of $6.8 billion, up 12% year over year
* Free cash flow of $5.2 billion, up 14% year over year



Medtronic's strong financial performance is driven by its diversified business model, with leading market positions in growth markets, a robust product pipeline, and solid free cash flow. The company's ability to generate consistent revenue and earnings growth, even during challenging times, makes it an attractive investment opportunity.

2. Innovative Product Pipeline and Market Expansion

Medtronic's long-term growth potential is driven by its innovative product pipeline and market expansion strategies. Some of the company's key product innovations and market expansions include:

* Transcatheter Aortic Valve Replacement (TAVR): Medtronic's Evolut™ FX+ TAVR system received U.S. FDA approval in May 2024, expanding its market reach and providing a less invasive treatment option for patients with aortic stenosis.
* Leadless Pacemakers: Medtronic's Micra™ transcatheter pacing system (TPS) has seen high-teens growth, driven by its minimally invasive approach and the increasing demand for leadless pacemakers. The company's Micra™ TPS is the only one with full-body MRI compatibility, providing a competitive advantage.
* Diabetes Management: Medtronic's Guardian™ Connect system, a hybrid closed-loop insulin delivery system, has been a game-changer in diabetes management. This product innovation combines continuous glucose monitoring (CGM) and automated insulin delivery, providing personalized care for people with type 1 diabetes.
* Spine and Neuromodulation: Medtronic's AiBLE™ ecosystem of spine implants and enabling technology has driven mid-single digit growth in its Core Spine and Biologics and Neurosurgery segments. The company's neuromodulation division has also seen low-double digit growth, driven by products like the Inceptiv™ closed-loop spinal cord stimulator.

Medtronic's commitment to innovation and continuous product development positions the company competitively in the market, with a strong pipeline of high-growth products and a focus on responsible AI development.

3. Resilient Balance Sheet and Cash Flow Management

Medtronic's strong balance sheet and cash flow management position the company to withstand economic downturns and capitalize on recovery opportunities in the healthcare sector. The company's ability to generate strong cash flow from operations, maintain a solid dividend payout, and manage its supply chain effectively enables it to navigate challenges and maintain growth.



Medtronic's robust financial performance, innovative product pipeline, and resilient balance sheet make it an attractive investment opportunity for long-term growth and shareholder value. As the company enters a new fiscal year, there are compelling reasons to buy Medtronic stock like there's no tomorrow.

In the words of Medtronic's Chairman and CEO, Geoff Martha, "We delivered a strong finish to the fiscal year, with broad strength across our businesses and each of our four segments posting mid-single digit or higher organic revenue growth. Our momentum is building into the new fiscal year. We're beginning new product cycles in some of MedTech's most attractive markets, which is further enhanced as we apply AI across our portfolio. We are very optimistic about what we can achieve in fiscal '25 and beyond."