This Unique Signal Points To Upside At Medtronic

• In a recent report, analysts at Rage Frameworks took a look into Medtronic PLC MDT.
• According to Rage’s artificial intelligence driven alpha signal, Medtronic’s stock “is undervalued and offers a solid long term growth potential.”
• In fact, the experts noted, “Medtronic is gathering assets to deliver growth for the next several years.”

According to a recent Rage Frameworks report, Medtronic is putting assets together to growth consistently over the next several years. But, while the company offers robust fundamentals and long-term growth potential (revenue is expected to grow by 10 percent each year, over the foreseeable future), its stock is quite undervalued.

The analysts explained that they like Medtronic’s M&A strategy, which is focused on constructing a long-term product pipeline and moving into adjacent markets. Beyond the much discussed acquisition of Covidien Ltd COV, the company continues to buy small healthcare firms “that bring emerging technologies aligned with growth markets –Diabetes, Oncology, Bladder or Bowel Control Therapy, and build out the next generation Cardiovascular therapies and devices,” the note expounded.

Finally, the experts went into R&D and the product pipeline. What they like here, they explicated, is that they are both “focused on therapy innovation and product innovation that leverages emerging technologies and fits new consumer demands.”

In fact, they noted, Cardiac Rhythm & Heart Failure is one of the company’s faster-growing segments, partially driven by the release of tiny subcutaneous heart monitor Reveal Linq. In the same line, Medtronic expects that the launch of its supersmall leadless pacemaker Micra Transcatheter Pacing System (TPS) -in 2016- to help it maintain revenue growth momentum.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.