Medtronic: A Lesson On Reasonableness Despite New Highs

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).

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