Medtronic Still a Good Bet, Analysts Say

Medical device maker Medtronic Inc. will release its earnings Feb. 17, and there may be cause for future optimism because of its diverse
product range.

The Fridley-Minn. based company, which is best known for the development of the pacemaker, has seen its stock languish, and sometimes flat-line, over the last decade.

“The stock has been a disappointment for years because of poorly timed
acquisitions, slowing core markets and consistently aggressive guidance,” said Bank of America/Merrill Lynch analyst Bob Hopkins.

Since 1999, total return on shares in the company has dipped 6.5 percent.

With the American healthcare system poised for change in the Obama
administration, the economy in turmoil, and Medtronic’s two major
businesses, most experts refer to the breadth and diversity of Medtronic’s
product lines.

The company sells devices that treat a variety of ailments and conditions,
ranging from heart disease to diabetes to spine maladies, and has a strong penchant to invest in development of new products, as well as acquiring start-ups with promising technology. Plus, Medtronic is the market leader in many of the markets where it competes.

Investors will have a better sense of how Medtronic is performing when the company reports quarterly earnings in two weeks.