Advertisement
investing

The Best Stock in Minnesota: Medtronic

We analyzed publicly traded companies based in the North Star State to identify the best stock in Minnesota to buy now.

We scoured the nation to identify the best stock in every state. Medtronic (symbol MDT) is the publicly traded company we picked in Minnesota. The company headquarters is located in Minneapolis.

A word of caution: Since we selected a single stock from each state (plus one from D.C), and choices in some states are sparse, a few of our picks are best suited to investors comfortable with a higher degree of risk. This is not necessarily one of our 51 favorite stocks in the entire U.S., in other words.

Medtronic by the Numbers

  • Headquarters: Minneapolis
  • Share price: $89.09
  • Market value: $122.0 billion
  • Price-earnings ratio: 18
Advertisement - Article continues below

(Prices and data are as of June 22, 2017)

Medtronic is reshuffling its business lines, joining forces with fast-growing partners and jettisoning laggards. In January 2015, Medtronic, which specializes in therapeutic medical devices such as pacemakers, defibrillators and stents, acquired Covidien, a leader in minimally invasive surgical devices.

With the acquisition, says CFRA analyst Jeffrey Loo, Medtronic becomes a worldwide leader in a diverse array of medical products. Then, in April, Medtronic agreed to sell its hospital-supply business, which focused on patient-care products, to Cardinal Health. Medtronic will use $1 billion of the after-tax proceeds to buy back shares, and it will pay down debt with the remaining $4.5 billion. Analysts at UBS say the sale exemplifies Medtronic’s commitment to selling its less profitable, slower-growing business segments in favor of higher-growth opportunities. The company has also committed to spending $10 billion on research and development in the U.S. through 2024. CFRA’s Loo says the stock is a “buy” and reckons it could reach a price of $100 a share over the next 12 months.

Advertisement

Most Popular

What Are the Income Tax Brackets for 2020 vs. 2019?
tax brackets

What Are the Income Tax Brackets for 2020 vs. 2019?

The IRS unveiled the 2020 tax brackets, and it's never too early to start planning to minimize your future tax bill.
June 20, 2020
HSAs Get Even Better
Financial Planning

HSAs Get Even Better

Workers have more options with flexible spending accounts, too.
July 2, 2020
17 States That Will Gain or Lose Electoral-College Votes After the 2020 Census
Politics

17 States That Will Gain or Lose Electoral-College Votes After the 2020 Census

Every 10 years, the 435 seats in the House of Representatives are reassigned based on the results of the U.S.
July 2, 2020

Recommended

3 Municipal Bond Funds for Rich, Tax-Friendly Yields
Investing for Income

3 Municipal Bond Funds for Rich, Tax-Friendly Yields

Municipal bond funds allow you to enjoy the benefits of tax-exempt income. By investing CEFs, you can sweeten the pot even further.
July 2, 2020
Is the Stock Market Closed for the Fourth of July?
Markets

Is the Stock Market Closed for the Fourth of July?

Independence Day falls on a Saturday in 2020. As a result, the bond and stock markets are closed for a long holiday weekend. Here's a look at the mark…
July 2, 2020
2020 Stock Market Holidays and Bond Market Holidays
Markets

2020 Stock Market Holidays and Bond Market Holidays

Is the market open today? Take a look at which holidays the stock markets and bond markets take off in 2020.
July 1, 2020
13 Best Vanguard Funds for the Next Bull Market
mutual funds

13 Best Vanguard Funds for the Next Bull Market

Optimistic that the bounce since March is indeed the start of the next bull market? Here are the 13 best Vanguard funds to help you make the most of i…
June 25, 2020