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Yahoo
6 hours ago
- Business
- Yahoo
Does This Move Make Medtronic Stock a Buy?
Medtronic's diabetes care unit has grown faster than the rest of its business in recent years. However, the company decided to spin off this segment into a stand-alone corporation. Still, Medtronic has several growth avenues and an impeccable dividend program. 10 stocks we like better than Medtronic › Over the past few years, Medtronic (NYSE: MDT) has faced significant challenges, including a pandemic-induced slowdown, relatively slow revenue growth, and economic issues that impacted its financial results. Throughout it all, Medtronic's diabetes care business has consistently been one of its fastest-growing segments. However, the healthcare leader recently announced some news regarding this unit that might surprise some investors. Let's find out more about it and discuss what it means for Medtronic's prospects. Medtronic markets several products within its diabetes care segment. Perhaps its most important line is its insulin pump franchise. One of the latest iterations of this was the MiniMed 780G, which came with several nifty features, including automatic insulin dose corrections. Medtronic also markets continuous glucose monitoring (CGM) systems that allow diabetes patients to keep track of their blood sugar levels, with constant measurements every few minutes. Additionally, it offers insulin pens and a software that collects information from CGM devices, insulin pumps, and smart pens to create reports to inform patients' progress or share with medical professionals. There is considerable room for growth in the diabetes market. Of the half-billion adults worldwide with diabetes, only 1% had access to CGM technology as of the end of 2023. One might think Medtronic would seize the vast untapped opportunity, especially considering its diabetes care unit's faster growth. During the company's fiscal 2025, ended April 25, Medtronic reported revenue of $33.6 billion, up 3.6% compared to the previous fiscal year. The company's diabetes care segment generated $2.8 billion in sales, with year-over-year growth of 10.7%. True, it still makes up a small part of its business, but given the massive worldwide opportunity, it might have eventually become its biggest growth driver if it kept up its much faster growth pace for a long time. However, Medtronic announced that it would spin off its diabetes care unit, which will become a stand-alone, publicly traded corporation within the next 18 months. Medtronic wants to simplify its portfolio and focus its resources on core, high-margin growth opportunities. That's the rationale management gave for the separation. What does it mean for investors? Medtronic would likely struggle to catch up with the leaders in the diabetes care field. Abbott Laboratories and DexCom dominate the CGM market. In the insulin pump niche, Medtronic has had to compete with companies such as Tandem Diabetes Care. Perhaps Medtronic felt it would not be competitive in these and other niches of the diabetes market over the long run, hence its decision to focus on markets where it "has leading core competencies," to borrow the company's phrasing. While Medtronic will lose its fastest-growing segment, its business should remain robust. The company still markets dozens of products across several other areas that generate consistent revenue and profits. In today's challenging environment, investors tend to gravitate toward steady and stable corporations like Medtronic. Furthermore, the healthcare leader recently announced important news. The company is requesting U.S. clearance for its Hugo robotic-assisted surgery (RAS) system in urologic procedures after the device delivered strong clinical trial results. Approval of Medtronic's RAS Hugo system in the U.S. should unlock massive opportunities, given the industry's underpenetration and significant runway for growth. Finally, Medtronic remains an excellent dividend stock, and it recently announced yet another payout hike. The medical device specialist has increased its dividends for 48 consecutive years -- just two more and it will join the exclusive rank of Dividend Kings. Even with the potential impact of tariffs, Medtronic has performed relatively well this year compared to broader equity markets. In the long run, it should be able to mitigate the effects of tariffs, given its diversified business and consistent earnings, which can enable it to shift its manufacturing around. Medtronic remains a top pick for long-term, income-oriented investors despite spinning off its fastest-growing unit. Before you buy stock in Medtronic, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Medtronic wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends DexCom and Medtronic and recommends the following options: long January 2026 $75 calls on Medtronic, long January 2027 $65 calls on DexCom, short January 2026 $85 calls on Medtronic, and short January 2027 $75 calls on DexCom. The Motley Fool has a disclosure policy. Does This Move Make Medtronic Stock a Buy? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 hours ago
- Business
- Yahoo
IBC Advanced Alloys Third Quarter 2025 Earnings: US$0.005 loss per share (vs US$0.002 profit in 3Q 2024)
Revenue: US$4.52m (down 32% from 3Q 2024). Net loss: US$533.0k (down by 330% from US$232.0k profit in 3Q 2024). US$0.005 loss per share (down from US$0.002 profit in 3Q 2024). We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. All figures shown in the chart above are for the trailing 12 month (TTM) period IBC Advanced Alloys' share price is broadly unchanged from a week ago. Before you take the next step you should know about the 2 warning signs for IBC Advanced Alloys (1 doesn't sit too well with us!) that we have uncovered. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
9 hours ago
- Business
- Yahoo
Best Stock to Buy Right Now: Realty Income vs. Agree Realty
Realty Income is a net lease REIT with a lofty 5.8% dividend yield. Agree Realty is a net lease REIT with a roughly 4.1% yield. Realty Income wins on yield but falls short of Agree Realty on this key metric. 10 stocks we like better than Realty Income › The S&P 500 (SNPINDEX: ^GSPC) is offering a tiny 1.3% yield today. The average real estate investment trust (REIT) has a yield of around 4.1%. That's the backdrop for investors considering between net lease REIT Agree Realty (NYSE: ADC) and its average 4.1% yield, and Realty Income (NYSE: O) and its above-average 5.8% yield. But there's more than yield to examine in this matchup. At the core of the business models followed by Agree Realty and Realty Income are net lease properties. Generally speaking, these assets are occupied by a single tenant, who is responsible for most property-level operating costs. This gives the tenant effective control over the asset they occupy, and reduces the risk for the landlord, since the property owner doesn't have to deal with the costs and effort of maintaining the asset. Although any single property is high risk, because there's just one tenant, over a large-enough portfolio, that risk is well mitigated. Realty Income is the largest net lease REIT with more than 15,600 properties. Agree Realty is a smaller REIT, but still has a significant portfolio with roughly 2,400 properties. But size isn't the only difference between these two portfolios. Agree is focused on owning retail assets in the United States. Realty Income's portfolio is roughly 75% retail, with industrial and "other" assets rounding the portfolio out to 100%. In the "other" category are things like vineyards, casinos, and data centers. It has a far more diversified portfolio, noting that it also has investments in several European countries. Given how much larger Realty Income is than Agree, it simply takes more transaction volume to move the needle on the top and bottom lines. The REIT's diversification helps ensure that it has more levers to pull when it comes to making new investments. From a business fundamentals perspective, Agree is small and focused on growing its core, while Realty Income is larger and more diversified. That has translated into very different valuations, which is, perhaps, appropriate. As noted, Agree Realty's dividend yield is 4.1% or so, right in line with the REIT industry average. Given the higher 5.8% yield on offer from Realty Income, it is pretty clear that investors are affording Agree Realty a premium price. It is worth highlighting that Realty Income, given its large size, is considered a bellwether in the net lease space. If you are looking to maximize the income your portfolio generates, then Realty Income will be the obvious choice here. However, that comes at a cost. That cost is growth. Agree Realty is projecting adjusted funds from operations (FFO) growth of 3.6% at the midpoint of its 2025 guidance. At the high point of Realty Income's guidance, it will only grow adjusted FFO by 2.1% or so. If you prefer to own a REIT that's growing more quickly, the better choice is Agree Realty. There's a secondary impact on the growth front. Realty Income's dividend has increased around 4.3% a year, on average, over the past 30 years. That's not bad, but if adjusted FFO is only expected to grow by 2% or so, investors should expect notably lower dividend increases over the near term. Agree Realty, on the other hand, has a bit more room to increase its dividend. And on that front, it has increased its dividend by around 5.5% a year, on average, over the past decade. Again, the near-term increases might fall below that figure, but they are still likely to be above the dividend growth on offer from Realty Income. So if you lean toward faster-growing dividends, Agree will win. At the end of the day, both Realty Income and Agree Realty are well run, financially strong net lease REITs. Dividend investors probably wouldn't be making a mistake with either one. However, they aren't interchangeable. If you are looking for yield and/or diversification, then Realty Income is the likely winner here. If you prefer faster-growing businesses and dividends, you'll probably prefer Agree Realty. Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Reuben Gregg Brewer has positions in Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy. Best Stock to Buy Right Now: Realty Income vs. Agree Realty was originally published by The Motley Fool
Yahoo
10 hours ago
- Business
- Yahoo
Is ITV the best FTSE bargain stock about today?
ITV (LSE:ITV) has often looked like a dirt-cheap FTSE stock to me, and I've tried to talk myself into investing (possibly out of nostalgia for shows like Heartbeat and A Touch of Frost!). But when I check in every few months to review the share, it's gone nowhere. Not much has changed on this front. The share price is up 1% in 12 months and down 1% over five years. Not great drama then, though someone who invested four years ago would be down by 38%. Yet I can still see the appeal. There's a well-supported 6.3% dividend yield on offer, and the price-to-earnings (P/E) ratio of 7.7 is very undemanding. Indeed, it could prove to be an outright bargain if investors start reassessing the broadcaster's prospects. Let's take a closer look. Like one of its two-part dramas, ITV is split into two businesses. There's the Media & Entertainment unit, which houses its broadcasting (traditional TV channels) and streaming (ITVX) operations. This earns money primarily through advertising. The other part is ITV Studios, which is its production business. This creates content for both itself and third-party streaming companies like Disney, Netflix (NASDAQ:NFLX), and Amazon Prime Video. For example, it made Rivals (Disney), Run Away (Netflix), and The Devil's Hour (Amazon Prime Video). And it licences out popular TV formats like I'm a Celebrity... and Love Island around the world. In Q1, Studios' revenue edged up 1% as it recovered from the Hollywood strikes, but the other division reported a 2% fall in ad revenue. Group revenue was down 1% to £875m. My view is that I like the Studios operation and think there's value in it. In fact, I'm surprised a content-hungry streaming giant hasn't swooped in and acquired it — or the whole company — by now. After all, ITV's enterprise value is £3.37bn. For context, Netflix plans to spend approximately $18bn (£13.3bn) on content this year alone! For me, these figures put into sharp focus what ITV is up against. Netflix has become the global TV channel and has ambitions to become a $1trn company by 2030. In contrast, ITV's revenue is forecast to rise by less than 2% this year. It's important to understand the competitive dynamics here. While Netflix's profits and content budget march upwards, traditional UK broadcasters are having to make cuts. For example, the wonderful BBC period drama Wolf Hall: The Mirror and The Light had to cut loads of planned scenes set outside due to budget constraints. Cast members had to take a pay cut to get it finished. Wolf Hall's director Peter Kosminsky said there is no way the BBC or ITV could afford to make Netflix's hit series Adolescence (too many paid extras, for one). I fear this will eventually show up in programming quality, cementing Netflix's dominance further. Recently, MPs suggested taxing streaming giants to save the UK TV industry from oblivion. This presents some regulatory risk for Netflix. While I'm broadly supportive of this, I'm also not keen to invest in an industry that might need saving by the government. Of course, ITV could be acquired, potentially creating decent returns from today's 78p. But I would rather consider investing in the disruptors (Netflix, Disney, or Amazon) than the disrupted. The post Is ITV the best FTSE bargain stock about today? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Ben McPoland has no position in any of the shares mentioned. The Motley Fool UK has recommended Amazon and ITV. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
Yahoo
11 hours ago
- Business
- Yahoo
Monro, Inc. (MNRO): A Bull Case Theory
We came across a bullish thesis on Monro, Inc. (MNRO) on Enterprising Investor's Substack. In this article, we will summarize the bulls' thesis on MNRO. Monro, Inc. (MNRO)'s share was trading at $12.66 as of 23rd May. MNRO's trailing and forward P/E were 19.78 and 15.82 respectively according to Yahoo Finance. Copyright: baranq / 123RF Stock Photo Monro (MNRO), previously highlighted when trading at $30 with an estimated fair value of $27, has since declined to $12.80, prompting a fresh look at the stock. In 2024, the company continued to struggle with inflation and a cautious consumer environment, as customers delayed purchases and opted for cheaper tires. This ongoing weakness has led to further deterioration in both the share price and free cash flow. A year ago, Monro traded at a 6x FCF multiple, and while it now trades at 5.67x, the compression is due to a declining FCF base rather than a material improvement in valuation. Meanwhile, its price-to-book ratio has fallen from 1.25x to just 0.59x, indicating significant market pessimism. Despite the weak backdrop, Monro currently yields 8.75%, raising questions about the dividend's sustainability. On a net income basis, the 175% payout ratio suggests it's not well-covered, but cash flow paints a more forgiving picture. In the most recent period, Monro generated $98 million in operating cash flow, spent $27 million on capex, and paid $36 million in dividends, leaving a modest $35 million cushion. While this suggests the dividend may be sustainable in the near term, any further business deterioration could force a cut. With low debt, a high yield, and a valuation that looks cheap both on free cash flow and book value, Monro appears more compelling now than it did at higher prices last year. Though headwinds remain, the stock merits deeper due diligence at these depressed levels. Monro, Inc. (MNRO) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held MNRO at the end of the fourth quarter which was 17 in the previous quarter. While we acknowledge the risk and potential of MNRO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MNRO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
