9 Stocks on Jim Cramer’s Radar

5. Medtronic plc (NYSE:MDT)

Number of Hedge Fund Holders: 60

Cramer recently highlighted a conversation with the CEO of Medtronic plc (NYSE:MDT), who expressed confidence in the company’s strong performance.

“Yesterday… we had Geoff Martha on, he’s the CEO of Medtronic, that’s another stock that hasn’t done anything lately. I thought he told a great story about all the new products he’s rolling out, lifesaving products nobody seemed to care about. It was a big yawn. Uh-uh. Today, when the stock was one of the best performers of the S&P 500, up 4%, I remembered what he said yesterday, which is things are pretty darn good. It does make a difference.”

In December 2024, Cramer again discussed the company as he said:

“… the medical device company that’s focused on cardiovascular disease, neuroscience, robotic surgery, and diabetes. Full disclosure, Medtronic’s been a long-term underperformer, up just 12% over the past decade. The stock had a big run during the early portion of the pandemic, reaching new all-time highs, but the gains didn’t last. By the time Medtronic bottomed in late 2023, the stock was actually below where it traded in March of 2020 during the depths of the Covid crash. That’s miserable. But I’m interested in Medtronic here because the company seems to be making a turn, getting back its momentum from the recent spate of weakness in healthcare.”

Cramer also discussed Medtronic’s (NYSE:MDT) stock performance from late October to December 2024, calling it an exhausting but strong investment opportunity. He highlighted the company’s successful product launches, with 120 approvals in 2024, including advancements in transcatheter aortic valve replacement, pulsed-field ablation, leadless pacemakers, and the Hugo robotic surgery platform.

Cramer noted that these innovations have driven better financial results for Medtronic (NYSE:MDT), including eight consecutive quarters of mid-single-digit organic sales growth. He further added:

“Medtronic’s earnings were basically flat in the last full fiscal year, which ended in April but in the current 2025 fiscal year, the earnings are expected to grow by almost 5%. And if you believe the consensus estimates, that should accelerate to 7% in fiscal 2026 and 8% in fiscal 2027. When Medtronic reported its most recent numbers in mid-November, the stock sold off a bit, but the actual quarter was strong.

Management even raised their full-year organic sales growth forecast and their earnings forecast. So I’d be looking to buy Medtronic in the weakness, but the stock’s selling for just under 14 times next year’s earnings estimates. That’s pretty amazing. It’s one of the cheapest names in the medtech group and hey, Medtronic’s paying you to wait for a comeback. It’s got a bountiful 3.4% dividend yield, very safe, best in the MedTech space by a wide margin.”