People tend to lump all companies together as “stocks” and today the general characterization is that stocks are “expensive.”
While it is true that Medtronic is at an all-time high price, this certainly doesn’t translate to an all-time high valuation.
As such, many might be inadvertently passing over perfectly investable opportunities.
Everyone is keenly aware of the current market situation, right? The broader indices are at all-time highs and thus prices should fall, and partnership decisions made today ought to come with a “Caution: danger ahead” label. Perhaps, but we would like to remind the reader that it is not a stock market so much as it is a market of stocks. As a fundamental example of this, we thought it might be interesting to look at the past relationship of share price and earnings for medical device maker Medtronic (MDT).
— Guru Focus