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In this weekend's Barron's, Neil Martin makes the case for Medtronic (MDT):

Good news or bad, Medtronic's stock is cheap. The shares are trading for 11.4 times fiscal '09 estimates, and 10.5 times fiscal '10 projections of $3.20 a share. That's well below the 13 price/earnings multiple on the Standard & Poor's 500 Health Care Equipment and Services index, and a P/E of 15 on the broader S&P. Medtronic itself hasn't had such a low P/E in at least 10 years.

Analyst Rick Wise at Leerink Swann rates the stock Market Perform, but hails the ability of management, led by Chief Executive Officer William Hawkins, to set "achievable growth targets" resulting in 5% to 7% organic top-line growth. "Longer term, for investors who have the patience to watch this scenario unfold, Medtronic is one of the least expensive stocks in the health-care universe," he says.

Earnings are coming out on Tuesday.

Posted by edelfenbein at May 16, 2009 8:12 PM