Valued at $106.4 billion by market cap, Medtronic plc (MDT) is one of the world’s largest medical device companies, headquartered in Ireland. It develops technologies for cardiovascular, surgical, neuroscience, and diabetes care. 

Companies worth $10 billion or more are generally described as “large-cap stocks,” and MDT perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the medical devices industry. With operations in over 150 countries, Medtronic is recognized for its strong innovation and consistent dividend payments. 

Despite its notable strength, MDT shares are down 13% from their 52-week high of $96.25 touched on Mar. 10. Over the past three months, MDT stock declined 9%, compared to the broader Dow Jones Industrial Average’s ($DOWI) 3.5% fall during the same time frame.

In the longer term, shares of MDT rose 4.8% on a YTD basis, outperforming $DOWI’s marginal losses. However, the stock climbed 2.9% over the past 52 weeks, lagging behind $DOWI’s 9.4% returns over the last year.

To confirm the bearish trend, MDT has been trading below its 50-day moving average since the end of March and under its 200-day moving average since early March, with slight fluctuations. 

On May 21, Medtronic shares dipped 2.4% after releasing fourth-quarter earnings, attributed to the announcement of plans to spin off its $2.8 billion diabetes division into a standalone public company. The company cited the division's distinct consumer-facing model and narrower margins as reasons for the spinoff, aiming for greater valuation potential outside the core business. 

On the bright side, the company announced adjusted EPS of $1.62 and revenue of $8.93 billion, exceeding forecasts of $1.58 EPS and $8.81 billion in revenue. Looking ahead, Medtronic provided fiscal year 2026 guidance, with adjusted EPS projected to be between $5.50 and $5.60, and organic sales growth of approximately 5%. 

In the competitive medical devices industry, Abbott Laboratories (ABT) has taken the lead over MDT, showing resilience with an 18.1% gain on a YTD basis and a 30.7% uptick over the past 52 weeks.

Wall Street analysts are reasonably bullish on MDT’s prospects. The stock has a consensus “Moderate Buy” rating from the 29 analysts covering it, and the mean price target of $94.46 suggests a potential upside of 12.8% from current price levels.