Market noise is everywhere. Financial headlines focus on the same handful of stocks while important opportunities – the kind that can meaningfully impact your portfolio – often fly under the radar.
That’s exactly why we publish this watchlist each week.
While most investors get distracted by mainstream stories, we’re digging through earnings reports, analyzing technical setups, and monitoring where institutional money is flowing to identify companies at potential turning points. Our focus isn’t on what’s already priced in, but rather on what the market hasn’t fully recognized yet.
Each week, we spotlight three stocks that deserve your attention. We look for opportunities where timing, valuation, and potential catalysts align to create favorable entry points.
Here’s what we’re watching this week:
Medtronic (MDT)
Medtronic represents an attractive value alternative in surgical robotics as the diversified medical device giant pursues the high-growth robotic surgery market at a fraction of pure-play competitor valuations. Trading around $105 per share with a $135 billion market cap and offering a 2.7% dividend yield backed by 48 consecutive years of annual increases, Medtronic trades at a 28 price-to-earnings ratio—less than half the 74 P/E commanded by surgical robotics leader Intuitive Surgical despite pursuing the same opportunity.
The investment thesis centers on replicating Intuitive Surgical’s successful flywheel business model:
- Surgical robots drive recurring revenue from parts, services, and instruments
- Intuitive expanded installed robot base 13% in Q3 2025 while surgeries performed increased 20%
- Approximately 75% of revenue coming from high-margin recurring streams
- Creates annuity-like business
While surgical robots remain fairly new for Medtronic requiring catch-up versus the established leader, the company’s diversified medical device portfolio provides financial stability to fund robotic surgery investments while maintaining attractive dividend payments.
Medtronic’s competitive advantages extend beyond robotics:
- Comprehensive medical device portfolio spanning cardiovascular, diabetes, neuroscience, and surgical solutions
- Management strategically streamlining operations by focusing on most profitable products
- Investing in high-growth areas like surgical robotics
- Balanced approach allows participation in transformative surgical technology trends
The valuation discount versus Intuitive Surgical appears excessive given Medtronic’s execution capabilities, financial resources, and proven track record of success across multiple medical device categories. While Intuitive commands premium multiples reflecting its market leadership and pure-play exposure, investors receive no dividend for accepting single-product concentration risk.
Medtronic offers 2.7% current yield with projected dividend growth, diversification benefits reducing execution risk, and meaningful upside optionality if surgical robotics gains traction.
MP Materials (MP)
MP Materials presents a compelling strategic opportunity as the only active rare earth mine operator in the United States positions itself to benefit from massive government support securing domestic supply chains. Trading around $62 per share with an $11 billion market cap after surging 254% year-to-date, the company operates the Mountain Pass mine in California while developing rare earth magnet manufacturing capabilities essential for electronics, semiconductors, robotics, defense technologies, wind turbines, and electric vehicles.
BMO Capital Markets upgraded MP Materials to outperform with a $75 price target implying 36% additional upside despite the massive year-to-date rally.
The fundamental thesis centers on MP Materials’ unique positioning:
- China controls nearly 70% of global rare earth extraction
- 80% of U.S.-consumed rare earth elements imported primarily from China
- Creates significant supply risks for critical technologies
- President Trump allocated billions toward critical mineral projects
In July 2025, the Department of Defense acquired a 15% stake in MP Materials becoming its largest shareholder, while committing to purchase 100% of rare earth magnets produced at MP Materials’ 10X facility for 10 years.
Major commercial partnerships validate strategic positioning:
- $500 million multiyear agreement with Apple supplies magnets for consumer electronics
- Joint venture partnership with DoD and Saudi Arabian Mining Company Maaden
- Develops rare earth refinery in Saudi Arabia with MP Materials and Pentagon holding combined 49% stake
- DoD will finance U.S. share of development capital expenditures
BMO analyst Raj Ray emphasized that recent U.S.-China tensions “have highlighted the vulnerability of the U.S. supply chain” and believes temporary export ban halts “will not deter the U.S. from pursuing its policy goals of on shoring rare earth supply.”
The analyst sees multiple growth catalysts including additional production from the Apple recycling partnership and new 10X offtake contracts with more lucrative pricing. MP Materials currently produces rare earth oxides and metals with magnet production beginning by year-end 2025, creating a vertically integrated supply chain.
Brookfield Asset Management (BAM)
Brookfield Asset Management represents an exceptional growth and income opportunity as the Canadian financial giant recently increased its dividend 15% while targeting continued double-digit annual raises through at least 2030. Trading around $53 per share with an $85 billion market cap and offering a 3.4% dividend yield—nearly triple the S&P 500’s 1.2%—the company has successfully executed an ambitious growth strategy.
The company doubled fee-bearing capital from $277 billion in 2020 to $563 billion in 2025:
- Achieved roughly 15% annualized growth
- Supported matching 15% annualized increase in fee-related earnings
The investment thesis centers on management’s proven execution capabilities and ambitious yet achievable plan to double fee-bearing capital again by 2030, reaching approximately $1.2 trillion. Having successfully accomplished this exact goal once already demonstrates management credibility and operational excellence.
The company operates across five major investment platforms:
- Infrastructure, renewable power, private equity, real estate, and credit
- Positions itself as major player in each competitive area
- Focuses on three transformative themes: digitization, deglobalization, and decarbonization
- Management views as collective $100 trillion opportunity
The financial outlook supports exceptional dividend growth:
- Management expects fee-bearing capital expansion to drive approximately 17% annualized growth in fee-related earnings
- Earnings trajectory should comfortably support projected double-digit dividend increases
- 15% annual growth potentially doubling dividend within five years
The combination of current 3.4% yield with projected 15% annual dividend growth creates a rare growth-and-income profile appealing to both dividend investors seeking reliable income and total return investors targeting capital appreciation.
The key risk involves inherent reliance on capital markets conditions, as bear markets would make the fee-bearing capital doubling goal more challenging. However, the company’s diversification across five investment platforms and focus on secular megatrends provides some insulation from single-market exposures.