Is Medtronic Stock Underperforming the Dow?

With a market cap of $117.8 billion, Medtronic plc (MDT) is a leading global healthcare technology company focused on addressing complex health challenges through innovative medical solutions. With a global workforce serving patients across more than 150 countries, its technologies span cardiac devices, surgical robotics, insulin pumps, surgical tools, and patient monitoring systems. 

Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Medtronic fits this criterion perfectly. Guided by its mission to alleviate pain, restore health, and extend life, Medtronic’s innovations aim to improve outcomes and transform lives worldwide.

Shares of the medical device manufacturer have fallen 12.1% from its 52-week high of $106.33. The stock is up 27.1% over the past three months, outperforming the broader Dow Jones Industrials Average's ($DOWI) 3.7% gain over the same time frame.

Shares of the Dublin, Ireland-based company have fallen 2.4% on a YTD basis, lagging behind the Dow Jones’ 10.7% increase. Moreover, the stock has risen marginally over the past 52 weeks, compared to DOWI's 17.5% return over the same time frame.

MDT stock has been trading below its 50-day and 200-day moving averages since mid-February. However, it has moved above its 50-day moving average since July.

Medtronic shares rose 1.5% on Sept. 1 after the company raised its fiscal 2027 organic revenue growth outlook to 7.25% - 7.75% and lifted the lower end of adjusted EPS guidance to $5.94. The company also reported better-than-expected Q1 2027 revenue of $9.76 billion and adjusted EPS of $1.45. Growth was led by the cardiovascular business, where sales jumped 19.5% to $3.93 billion, including 88% growth in pulsed-field ablation, and neuroscience and medical surgical sales grew 10.3% and 10%, respectively.

In comparison, rival Abbott Laboratories (ABT) has lagged behind MDT stock. ABT stock has declined 10.9% on a YTD basis and 15% over the past 52 weeks. 

Despite MDT stock’s outperformance over the past three months, analysts are cautiously optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from the 29 analysts covering it, and the mean price target of $98.15 represents a premium of 3.9% to current levels.