MDT - is overvalued and looks bearish
Medtronic PLC is one of the largest medical device companies, Medtronic develops and manufactures therapeutic medical devices for chronic diseases. Its portfolio includes pacemakers, defibrillators, heart valves, stents, insulin pumps, spinal fixation devices, neurovascular products, and surgical tools. The company is nowhere close to be considered a cheap buy. It has Price-to-Free-Cash-Flow over 23.5. There are many good companies traded in the range between 10 and 16. What that means is that the stock is overvalued.
On 6 January 2019 I posted a bearish outlook for XLV, an ETF investing in large healthcare companies.
Today one of my followers on Twitter asked me to have a look at MDT which is one of the largest holdings of XLV.
And a long term count for MDT also looks bad for bulls. If you look at a weekly chart (below) you can see a clear (A)-(B)-(C) formation that started back in 1990s and topped in October 2018. I would not touch it until it gets to a strong demand zone between $59 and $56.50.
MDT - weekly chart updated on 9 January 2019
