Should You Buy Medtronic Stock After A Q1 Beat?

Medtronic stock (NYSE: MDT) gained 2% in a week, faring slightly better than the broader S&P500 index, up 0.5%. Medtronic
MDT
recently reported its Q1 fiscal 2024 (fiscal ends in April) results, which were better than the street estimates. Despite its recent uptick, investors will likely be better off buying Medtronic for reasonable gains in the long run, given its attractive valuation, as discussed below.

Interestingly, MDT stock had a Sharpe Ratio of 0.1 since early 2017, lower than 0.6 for the S&P 500 Index over the same period. It compares with the Sharpe of 1.3 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.