Medtronic (MDT) was trading at $80.3 on November 15, 2016. It had a 50-day moving average of $83.7 and a 200-day moving average of $84.8.
Medtronic is the largest pure-play player in the US medical device industry. The company is a leading player in device-based medical therapies in the following business segments: Cardiac and Vascular, Minimally Invasive Therapies, Restorative Therapies, and Diabetes. For a brief company overview, read An Investor’s Guide to Medtronic: Key Company Overview.
On November 15, 2016, Medtronic was trading ~10% below its 52-week high of $89.3 as of July 15, 2016, and ~13% above its 52-week low of $71.03 as of February 9, 2016. On the day, the company’s share price had fallen ~6% since the release of its fiscal 1Q17 earnings on August 25, 2016. The fall in the stock’s price was triggered as its reported revenue failed to meet analysts’ consensus expectations for fiscal 1Q17, even though its earnings met expectations. For a brief overview of the company’s fiscal 1Q17 earnings results, read Medtronic’s 1Q17 Earnings Were in Line, but What about Its Revenue?
Medtronic’s stock has fallen more than 2% in the last week, though the broader healthcare sector has witnessed a rally triggered by the election of Donald Trump as the next president of the United States. The Health Care Select Sector SPDR ETF (XLV) has risen more than 3% in the last week.
In a recent real-world population study carried out in Germany for intermediate risk aortic stenosis patients, it was found that the one-year mortality rate in patients who underwent transcatheter aortic valve replacement was higher than the mortality rate of those who underwent surgical aortic valve replacement. The study’s results contributed toward the fall in the company’s stock price.
Comparisons with industry and market performances
Medtronic’s stock has returned ~4.8% in the last 12 months. It’s outperformed the market represented by the S&P 500 Index, which has returned ~4% in the same period.
Medtronic’s stock performance can also be compared to the performance of the US medical device sector, which is represented by the iShares U.S. Medical Devices ETF (IHI). Medtronic has returned ~4.4% on a YTD (year-to-date) basis. This figure compares to the 6.7% and 9.7% returns generated by the market and IHI, respectively.
On November 16, 2016, Medtronic’s peers Stryker (SYK), Becton, Dickinson and Company (BDX), and Abbott Laboratories (ABT) had generated returns of 12.4%, 9.3%, and -12.8%, respectively, in the past 12 months.