Should You Avoid Medtronic?

I think it would be difficult to make a case for the stock. I just can't look at that chart and say that this is a trading opportunity. The 52-week low for the shares is $30.80, so yesterday's closing price is at least firmly above that level. Nevertheless, I'm not sure that's saying too much. If I were interested in starting a position at some point with this idea, I would wait to see how the shares perform over the next couple weeks and then engage a reassessment.

Truth be told, though, I don't have a lot of interest in this company right now. The current investing environment has made it extremely difficult to generate gains for many individual players. Both Medtronic and Johnson & Johnson are near their 52-week lows. Johnson & Johnson has a higher dividend yield than Medtronic. Which one do you think is the better bet? The answer, I'm certain, is obvious. A good yield backed by solid blue-chip status wins the day in my mind.

I believe avoiding Medtronic may be the correct thing to do, but certainly make your own decision. Rushing into any stock these days could be hazardous to your portfolio's health, so it's best to perform a significant quantity of due diligence before making any move.

Disclosure: I don't own any company mentioned; positions can change without notice.