---
title: "1 Reason Medtronic (MDT) Is One of the Best Healthcare Stocks You Can Buy Today"
description: "Medtronic (MDT) is currently undervalued despite a high dividend yield of around 3%. The company is enhancing its business performance with new surgical robots and cardiac ablation systems. A planned "
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/258320283.md"
published_at: "2025-09-22T09:56:03.000Z"
---

# 1 Reason Medtronic (MDT) Is One of the Best Healthcare Stocks You Can Buy Today

> Medtronic (MDT) is currently undervalued despite a high dividend yield of around 3%. The company is enhancing its business performance with new surgical robots and cardiac ablation systems. A planned spinoff of its diabetes division is expected to boost earnings, as the remaining divisions have higher profit margins. As new products are introduced, Medtronic's earnings growth may exceed Wall Street's expectations, potentially shifting market sentiment from bearish to bullish.

**Medtronic** (MDT -0.68%) is out of favor today, noting it has a historically high dividend yield of around 3%. The company is working on improving its business performance, however, and stronger results are likely on tap. That could make Medtronic one of the best healthcare stocks you can buy today.

## Medtronic was in a funk

As a medical device maker, investing in research and development is a key aspect of Medtronic's business. Only R&D is an inherently lumpy effort, not to mention a time-consuming and expensive one. At least part of the downbeat view around Medtronic today is related to the fact that it went through a development dry spell. That, however, is beginning to change with the company's new surgical robots and cardiac ablation systems starting to gain traction.

Image source: Getty Images.

That, however, is just the start of the investment thesis around Medtronic. It has also been attempting to focus on its most profitable businesses. The next big move on this front will be the spinoff of its diabetes treatment division, which will be immediately accretive to earnings. That's because the rest of the healthcare giant's businesses (in the cardiovascular, medical surgical, and neuroscience niches) have higher profit margins than does the diabetes division.

The big picture here, however, is that as new products come on line, the company's earnings growth could be faster than Wall Street is currently expecting. Higher profit margins, essentially, should help supercharge the increased revenues from R&D developments. All in, you get to collect a high yield today while you wait for investors to catch up to the improving fundamentals of Medtronic's business. When they do catch up, the market could quickly go from being bearish on the stock to being bullish.

### Related Stocks

- [MDT.US - Medtronic](https://longbridge.com/en/quote/MDT.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| BUZZ-Street View: Medtronic's early-stage product cycle strength evident, analysts say | Medtronicexceeded Wall Street's Q3 profit and revenue expectations, driven by strong heart device demand, but maintained | [Link](https://longbridge.com/en/news/276231714.md) |
| Medtronic Analysts Cut Their Forecasts After Q3 Earnings | Medtronic PLC (NYSE:MDT) reported Q3 earnings with adjusted EPS of $1.36, surpassing estimates of $1.33, and sales of $9 | [Link](https://longbridge.com/en/news/276242035.md) |
| Take Solutions To Build Unified AI Platform For Healthcare | Take Solutions Ltd :TO BUILD UNIFIED AI PLATFORM FOR HEALTHCARE | [Link](https://longbridge.com/en/news/276094006.md) |
| Comgest Global Investors S.A.S. Sells 13,291 Shares of Medtronic PLC $MDT | Comgest Global Investors S.A.S. reduced its stake in Medtronic PLC by 36.2% in Q3, selling 13,291 shares, leaving it wit | [Link](https://longbridge.com/en/news/276338117.md) |
| Health care roundup: Market talk | Find insight on Bayer and more in the latest Market Talks covering the health care sector.. | [Link](https://longbridge.com/en/news/276221067.md) |

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.