Medtronic’s growth in revenue has been relatively impressive in recent years.
The company’s entry into the robotic-assisted surgery market could help change it.
There are other reasons to invest in Medtronic, including its solid dividend program.
Specialist in medical devices Medctronics(NYSE: MDT) He has not acted well for the last five years; The action has significantly delayed the wider actions. One of the problems found is the slow growth of income. Although he explored the plans to turn some of his low -growth units to improve on this front, he finally abandoned the idea.
However, new developments suggest that Medtronic could soon take advantage of a significant long -term opportunity. We look more deeply and discuss what it means for investors.
Where to invest $ 1,000 right now? Our analyst team just revealed what they think are the 10 best stocks to buy right now. Continue »
Medtronic has been developing its robotics assisted surgery device (RAS) for years, the Hugo system. The machine is used in many countries, but it has not yet been erased in the United States. This is where Medtronic could make more money, so the company has been trying its Hugo system in the United States to support regulatory authorization.
Medtronic has recently announced that a step closer to this goal has been approached. He finally submitted an application to the Food and Drug Administration (FDA) of the United States for approval of the Hugo system. This is after the device complied with its final primary security and efficiency points in a clinical trial with 137 patients who underwent urological procedures.
If the FDA puts its approval stamp on the Hugo system for this indication (urological procedures), it could be a great thing for Medtronic. As the company noted two years ago, only about 5% of the surgeries that could be done robotally were. This is important because minimally invasive robotic surgeries have significant advantages over open procedures. The former use tiny and highly maneuverable instruments and cameras that allow specialists to make small incisions and access the organ to function, while also providing a high -definition vision.
Therefore, there is no need to make large cuts in the skin tissue to access the organs directly. Minimally invasive surgeries have significant advantages for hospital patients and systems, including faster recoveries and shorter stays. However, the market is severely little based on the current volume of world procedures. Also a factor that the world population is aged, which will lead to a stronger demand from these long -term surgeries, as the elderly have more medical needs; Things look good for Medtronic in this market.
True, the company will enter into a industry dominated by Surgical intuitiveManufacturer of the DA Vinci System, a Ras device that has long been destined for urological procedures. But considering how to open this field, there should be room for many more players. Currently, the Hugo de Medtronic system seeks approval only for urological procedures, but will be addressed to other therapeutic areas in the future. As the company collects more approvals, the Hugo system eventually would have a significant impact on its financial results.
Although Medtronic’s shares have not worked well in recent years, their financial results have remained quite solid. Income and gains are consistent, largely due to a portfolio of deep and diversified products.
Medtronic also wins new authorizations regularly. Although most of their segments do not publish especially impressive sales growth, their diabetes care unit has been an exception. Medtronic Merca A range of products through this business, including the innovative 780g minimized insulin pump, and there should be a large space for growth here. Currently, Medtronic seeks to expand the approve of the device to include people with type 2 diabetes; Currently, it only erases in the United States only for those with type 1. Given that up to 95% of diabetics have the type 2 variety, this would be a significant expansion.
The diabetes care unit should continue to work well. The approval of the Hugo system will strengthen the entire business. And even with the threat of rates that could affect their costs and their background line, Medtronic’s financial results should remain relatively stable.
The company also has an excellent dividend profile, having increased its payments for 47 consecutive years. In just three more years, it will join the prestigious campaign of Dividend Kings. This makes Medtronic a higher stock for income applicants and recent Hugo -related developments make it more attractive.
Before buying shares at Medronic, consider this:
It Motley Fool Stock Exchange Advisor The analyst team just identified what they think are the 10 best stocks For investors to buy now … and Medtronic was not one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Think about whenNetflixMade this list on December 17, 2004 … if you invested $ 1,000 at the time of our recommendation,would you have 623,685 $!* Or when NvidiaMade this list on April 15, 2005 … if you invested $ 1,000 at the time of our recommendation,You would have 701,781 $!*
Now it’s worth notingValue AdvisorThe total average profitability is906%: a market crushing performance compared to164%For the S&P 500. Do not miss the most recent list of 10 Top, available when you joinValue Advisor.
Prosper Junior Btyy It has intuitive surgical positions. The Motley Fool has positions and recommends surgical intuitive. The Motley Fool recommends Medtronic and recommends the following options: January Long of 2026 $ 75 Calls to Medtronic and Short January 2026 $ 85 Calls to Medtronic. The mold’s fool has a Outreach policy.
