Covidien Ltd. (NYSE:COV)

CAPS Rating: 5 out of 5

The Company is in the business of developing, manufacturing and distributing medical devices and supplies, diagnostic imaging agents, pharmaceuticals and other healthcare products for use in clinical and home settings.

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Player Avatar mwlove (< 20) Submitted: 12/7/2011 2:56:37 PM : Outperform Start Price: $43.89 COV Score: +16.59

Covidien is currently undervalued by about 12%, just based on estimates of 4.30 eps and current P/E of 11.6. But with strong growth projected for 2012, it probably deserves a higher P/E. Add the great dividend and good pipeline, it's a combination growth/value play.

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