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
Advertisement

Most Popular

Election 2020: Joe Biden's Tax Plans
taxes

Election 2020: Joe Biden's Tax Plans

With the economy in trouble, tax policy takes on added importance in the 2020 presidential election. So, let's take a look at what Joe Biden has said …
September 18, 2020
Social Security Recipients, Veterans Must Act Now to Get Extra $500 Stimulus Check
Coronavirus and Your Money

Social Security Recipients, Veterans Must Act Now to Get Extra $500 Stimulus Check

The deadline for seniors and veterans to request an additional $500 stimulus check for a dependent child is approaching fast. See how you can claim yo…
September 25, 2020
3 Reasons to Wait Until 70 to Claim Social Security Benefits
social security

3 Reasons to Wait Until 70 to Claim Social Security Benefits

In a rush to file for Social Security benefits at age 62? Many people are, but slow down and do the math first.
September 29, 2020

Recommended

Bonds: 10 Things You Need to Know
Investing for Income

Bonds: 10 Things You Need to Know

Bonds can be more complex than stocks, but it's not hard to become a knowledgeable fixed-income investor.
July 22, 2020
The Best Vanguard Funds for 401(k) Retirement Savers
mutual funds

The Best Vanguard Funds for 401(k) Retirement Savers

Vanguard funds account for a third of the 100 most popular 401(k) retirement products. We rank Vanguard's best actively managed funds, including its t…
September 29, 2020
Best Bond Funds for Every Need
Investing for Income

Best Bond Funds for Every Need

In a changing market, it’s important to remember why we hold bonds in the first place.
September 15, 2020
Does a 40% Bond Allocation Make Sense in Today’s Portfolios?
retirement planning

Does a 40% Bond Allocation Make Sense in Today’s Portfolios?

For many investors, the short answer is no. Here’s why, and what you might consider instead.
September 7, 2020