Medtronic stock may benefit from recent market rally despite industry challenges

From Nasdaq: 2025-03-25 12:35:00

The recent market rally, led by tech giants like NVIDIA and Tesla, has given investors hope as stocks like Medtronic (MDT) may see a boost in momentum. Medtronic’s stock performance has been lackluster due to industry challenges, but positive market sentiment following tariff news could benefit the company.

Medtronic’s stock is currently trading below moving averages, indicating a bearish trend that may lead to short-term volatility in the stock price. The trade war and inflation concerns have impacted the MedTech sector, but recent optimism regarding tariffs could alleviate economic disruptions for companies like Medtronic.

Despite challenges in the industry, Medtronic’s long-term prospects remain bright, with expansions in global presence and innovative medical devices. The company’s growth in Cardiovascular and Hypertension businesses, along with strong liquidity, positions it well for future success.

Medtronic’s stock is attractively valued compared to industry peers, trading at a discount with a lower forward P/E ratio. This could present an opportunity for investors looking for long-term growth potential in the MedTech sector.

While Medtronic remains a promising player in the Medtech space, macroeconomic issues like trade tensions and inflation may impact its near-term gains. Current shareholders should hold positions, while new investors should wait for a potential retracement in the stock price for a better entry point. Consider the stock as a Zacks Rank #3 (Hold) option.



Read more at Nasdaq: Does the S&P 500 Rally Make MDT Stock a Buy Amid Easing Trade Tension?