May. 9 at 10:21 AM
$MDT [Again] Everyone is running to AI/HPC related stocks, but the valuations are becoming increasingly unsustainable and Overbought. By contrast,
$MDT is grossly Oversold on the 1YR Daily and 3YR Weekly charts, falling to an historical support/resistance line at/around
$75. The Company has stable/consistent revenue growth (5%), strong/healthy margins (EBITDA~27%, NM~13%), consistent positive FCF, good liquidity (Current/Quick~2), reasonable leverage (Net Debt/EBITDA~2, Interest Coverage~9) and a 3.5% dividend yield. The SP might continue to fall near term, much like I have mentioned, but the valuation and stochastics are becoming increasingly opportunistic (IMO) here, and biotechnology stocks more broadly. 25-50% appreciation from this level (IMO) intermediate term and the dividend, as-noted. Growth and Income (6-12mos).
