Valuation Risks for Medtronic PLC (NYSE:MDT)

Soon, valuation levels will matter again, and when that happens companies whose earnings growth rates don't warrant the PE multiples will see their share prices fall.  Stock Traders Daily has initiated coverage of Medtronic PLC (NYSE:MDT) with a Sell Rating based on valuation.

With earnings growth deteriorating this year valuation concerns are as well, and that poses serious risks for investors.  Our macroeconomic analysis, The Investment Rate, tells us that there is a liquidity crisis in the United States as that pertains to NEW MONEY, and that can and will have adverse influences on equity prices. 

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As the year continues this will result in multiple contractions, and the companies most vulnerable to that are those whose growth rates are declining.  MDT fits that description, and there is not only deserved of a sell rating based on current valuation levels, but also as that relates to future risks perceptions.

We encourage you to read The Investment Rate in conjunction with this observation.

Technical Summary

Term →Near Mid Long
Bias Neutral Neutral Neutral
P1 74.44 72.72 68.95
P2 75.66 75.65 75.84
P3 76.61 78.34 81.60

Long Term Trading Plans for MDT

April 6, 2016, 9:53 am ET

The technical Summary and associated Trading Plans for MDT listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for MDT. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

MDT - (Long) Support Plan

Buy over 68.95 target 75.84 stop loss @ 68.69.
The technical summary data tells us to buy MDT near 68.95 with an upside target of 75.84. This data also tells us to set a stop loss @ 68.69 to protect against excessive loss in case the stock begins to move against the trade. 68.95 is the first level of support below 75.47 , and by rule, any test of support is a buy signal. In this case, support 68.95 would be being tested, so a buy signal would exist.

MDT - (Short) Resistance Plan

Short under 75.84 target 68.95 stop loss @ 76.1.
The technical summary data is suggesting a short of MDT as it gets near 75.84 with a downside target of 68.95. We should have a stop loss in place at 76.1 though. 75.84 is the first level of resistance above 75.47, and by rule, any test of resistance is a short signal. In this case, if resistance 75.84 is being tested, so a short signal would exist.

MDT Long Term Analysis

MDT EPS Analysis

MDT Dividend Chart

MDT Revenue chart

MDT Growth rate - Quarterly

MDT Growth rate - Yearly

MDT PE chart

MDT PEG chart