Medtronic — Benefiting From Emerging Market Growth, Aging Population

By Richard Saintvilus

NEW YORK (TheStreet) — Investors who have poured their faith into health care stocks have made tons of money as evidenced by the 26.5% returns delivered by the health care sector over the past 12 months. That’s tops in the market with the tech sector coming in second with better than 18% 12-month gains.

One of the beneficiaries of the strong health care movement has been Medtronic (MDT – Get Report), a Minneapolis-based medical device manufacturer, which is due to report fiscal fourth-quarter and full-year earnings Tuesday before the opening bell. Medtronic’s focus on market share expansion in such areas as China, combined with an aging population in need of its services, MDT stock is a place investors can profit in the years ahead.

Granted, MDT shares aren’t in the value bin today — not at 24 times earnings, compared with a P/E of 21 for the S&P 500. And it looks even less appealing with shares trading at near record highs, up almost 7% on the year to date. But that won’t matter in the next five to 10 years. Investors can still do well buying MDT stock.


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