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Should you pick up Medtronic plc after the newest volatility gain?
 | By Rifka Kats | Macroaxis Story |
It appears Medtronic Plc will continue to recover much faster as its share price surged up 2.46% today. The company's current daily volatility is 1.94 percent, with a beta of -0.25 and an alpha of 0.04 over DOW. As many millenniums are trying to avoid current market swings, it makes sense to review Medtronic plc a little further and try to understand its current market patterns. We will evaluate why recent Medtronic Plc price moves suggest a bounce in September.
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Reviewed by Raphi Shpitalnik
Medtronic plc has roughly 10.95 B in cash with 7.23 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 8.16. Macroaxis provides trade recommendations on Medtronic plc to complement and cross-verify current analyst consensus on Medtronic Plc. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Medtronic PLC. Your research has to be compared to or analyzed against Medtronic PLC's peers to derive any actionable benefits. When done correctly, Medtronic PLC's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Medtronic PLC.
Investing in Medtronic PLC, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Medtronic PLC along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Medtronic PLC's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Medtronic PLC's Liquidity
Medtronic PLC financial leverage refers to using borrowed capital as a funding source to finance Medtronic PLC ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Medtronic PLC financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Medtronic PLC's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Medtronic PLC's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Medtronic PLC's total debt and its cash.
Medtronic PLC Gross Profit
Medtronic PLC Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Medtronic PLC previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Medtronic PLC Gross Profit growth over the last 10 years. Please check Medtronic PLC's gross profit and other fundamental indicators for more details.
Medtronic PLC Correlation with Peers
Investors in Medtronic can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Medtronic PLC. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Medtronic PLC and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Medtronic is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Medtronic for more details
Is Medtronic PLC valued wisely by the market?
We consider Medtronic Plc very steady. Medtronic plc has Sharpe Ratio of 0.0632, which conveys that the firm had 0.0632% of return per unit of risk over the last month. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-seven technical indicators for Medtronic Plc, which you can use to evaluate future volatility of the firm. Please verify Medtronic plc Mean Deviation of 1.34, downside deviation of 2.03, and Risk Adjusted Performance of 0.0057 to check out if the risk estimate we provide is consistent with the expected return of 0.12%.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Medtronic PLC. Please refer to our Terms of Use for any information regarding our disclosure principles.