Launch of new products suggests Medtronic’s success

Exchange: NYSE

Sector: Healthcare

Industry: Medical Appliances & Equipment

Entry strategy

Price: $88-91

Stop-loss: under $83,22

Take profit: $108,5

Investment horizon: half a year

Company details

Medtronic plc ($MDT) is one of the largest manufacturers of medical equipment. In 2015, Medtronic, Inc. acquired Covidien plc ($COV). Under the terms of the contract, they merged into Medtronic plc. The company is headquartered in Dublin, Ireland.

    Medtronic has six main business units that develop treatments for more than 70 chronic diseases, including heart failure, Parkinson's disease and diabetes:

  • heart rhythm disorders
  • neuromodulation,
  • spinal surgery,
  • diabetes,
  • heart surgery,
  • surgical navigation technology.

The issuer's capitalization is more than $124.5 billion (group + Large).

Company financial performance

The first two quarters of 2018 proved to be financially successful for Medtronic. Regular market launch of new products and services is any corporation’s key to success for increasing its value.

    At the end of October, 2018, the company received the approval of the U.S. Food and Drug Administration (FDA) on

  • a new system of aortic lesions repairment Valiant Navion(TM) — it allows patients with small iliac arteries to receive treatment;
  • a product for patients with chronic pain SynchroMed(TM)II myPTM(TM) Personal Therapy Manager — the device facilitates unpredictable pain by delivering automatic injections of drugs and painkillers prescribed by a doctor.

Technical analysis (trading plan)

Graph 1. Technical analysis of Medtronic plc ($MDT). Source: TradingViewOpen original image

Published on the 1st of November, 2018