Why Surgical Innovation Should Boost Medtronic's Growth

Medtronic (NYSE: MDT) may be a leader in the medical device space, but its sluggish 1.3% revenue growth over the past three years has not kept pace with the 5% growth of the medical device market. But Medtronic hopes to revive its revenue gains by capturing a larger share of an expanding new market.

Medtronic's Surgical Innovations segment achieved robust growth over the past year. Its 9% revenue growth overshadowed the 2%-3% revenue growth from the Cardiovascular and Neuroscience segments. Meanwhile, the Diabetes Devices segment lost ground with a 5% decline.

The growth from the Surgical Innovation segment is impressive given the procedural slowdowns caused by COVID-19. Occupied hospital beds, staffing shortages, and patient and staff infections drove the postponement of elective surgeries during COVID surges – but those procedures should pick up as activities return to normal.

Source Fool.com