Medtronic (MDT) Stock Analysis 2025: Surges Past Estimates, Holds $107.49 Amid Market Fluctuations

Medtronic plc (MDT), the global leader in medical devices, reported stronger-than-expected earnings on August 25, 2024, signaling resilience amid ongoing currency fluctuations and robust demand for its ventilators used in COVID-19 treatment. Despite a slight dip, MDT’s stock price held firm at its 200-day simple moving average (SMA) around $102.25, testing a critical quarterly pivot point near $108.49 between August 31 and September 16.

Highlights

• Medtronic surpassed earnings estimates in three of the last four quarters, showcasing consistent financial strength.
• The stock’s potential golden cross formation hints at further upward momentum if current trends persist.
• Medtronic’s share price closed at $107.49 on September 16, 2024, reflecting a 5.3% decline year-to-date but remaining in a bullish phase, trading 49% above its March low of $72.13.

Despite volatility, Medtronic’s P/E ratio stands at 27.23 with a solid dividend yield of 2.16%, underscoring its attractiveness to investors. The company’s ability to meet ventilator demand during the pandemic has bolstered its market position.

The daily stock chart illustrates a recovery from a 40.9% decline earlier this year, rebounding strongly to test key resistance levels. The stock’s 50-day SMA was breached in February but has since regained momentum, remaining above the 200-day SMA since late August.

Currently, MDT trades below its annual risky level of $121.17 but above weekly and quarterly value zones, indicating balanced risk and reward potential. A golden cross—when the 50-day SMA surpasses the 200-day SMA—could signal a major rally ahead.

Investment Insight

The golden cross is a bullish technical indicator suggesting sustained upward price movement. Investors may consider buying during dips toward semiannual and monthly value levels ($93.57 and $87.80) and reducing holdings near the annual risky threshold ($121.17). The quarterly pivot at $108.49 remains a significant price magnet.

The weekly chart shows MDT as overbought but maintaining strength above its five-week modified moving average ($102.68) and well above its 200-week SMA ($91.23). The 12x3x3 weekly slow stochastic indicator, currently around 81.60, supports cautious optimism but warns of potential short-term price corrections.

Trading Strategy

Utilize value and risky levels derived from historical price data to optimize entry and exit points. The stochastic oscillator helps identify overbought or oversold conditions, guiding strategic decisions. Readings above 80 suggest overbought status, while below 20 indicate oversold opportunities.

Note: The author holds no positions in MDT and does not plan to initiate any within the next 72 hours.

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