Medtronic, the medical device maker, has fallen by nearly a third since its April high. Yesterday's 10% drop was due to an earnings guide down of a whopping 2%. Medtronic now trades at nine times earnings. Medtronic's growth is slowing as people cut back on doctor's visits and elective surgery.
Times are bad enough that copays are stopping people from visiting the doctor. In my opinion, the more dominant trend is the aging baby boomers and the greater need there will be for healthcare in the future.
After the huge drop Wall Street's Finest, Jeff Mathews term for analysts, are coming out and downgrading Medtronic. Now, after it dropped by a third. At this price it is difficult for me to see how long term holders lose money on this stock.