Portfolio Case Study Of Medtronic Inc

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Portfolio Project: Medtronic Inc. Company Overview: Medtronic, Inc. was founded in Minnesota in 1949, in the garage of Earl Bakken and Palmer Hermundslie (Medtronic, 2014). The company has now grown to be the largest medical technology company in the world today, serving 140 counties (Medtronic, 2014). Medtronic, Inc. specializes in developing products for patients suffering from cardiovascular diseases such as cardiac rhythm disorders, as well as restorative therapies for patients with diabetes, digestive disorders, musculoskeletal trauma and spinal conditions (Network, 2014). They provide state of the art medical instruments and therapies to patients and healthcare professionals around the world. The majority of their sales (approximately 70%) are done here in the United States while the other 30% of their sales are done internationally; mostly with China, India, Puerto Rico, Singapore, the Middle East and South Africa (Medtronic, 2014). The company has over 46,000 devoted employees worldwide, 5,800 of those are scientists and engineers, dedicated to the promising research and innovation inside the three main groups of Medtronic Inc., the Cardiac and Vascular Group started in 1957, the Restorative Therapies Group, and the Diabetes Group. Both the Cardiac and Vascular and the Restorative Therapies groups are broken down further into four sub-groups. The Cardiac and Vascular Group is broken down into Cardiac Rhythm Disease Management (CRDM), Coronary, Structural Heart, and Endovascula and the Restorative Therapies Group is broken down into Spine, Neuromodulation, Diabetes, and Surgical Technologies (Medtronic, 2014). The Cardiac and Vascular Group alone, made 30% of Medtronic Inc.’s total revenue in 2014 at $8,765 million f... ... middle of paper ... ...ollars. I hypothesize that the fluctuation seen in the company stocks during this time was due to the overall market struggling after the housing market crash and all the company bail outs occurring (Akindayomi, 2012). But from 2012 on, Medtronic, Inc. has not seen any significant price drops in their stocks. From the “Stock Prices” scatter plot data the firm seems to have a very bright and prosperous future and the trending prices indicate continued positive gains for Medtronic, Inc. This type of stock growth would be very attractive to growth investors who look for steadily increasing stock prices to invest in. Additionally, according to CNN Money “The current consensus among 21 polled investment analysts is to buy stock in Medtronic Inc., this rating has held steady since March (2014), when it was unchanged from a buy rating” as described by (Network, 2014).

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