The Fool’s Take

Many people would love to invest in robotic surgery leader Intuitive Surgical, but its shares are rather steeply valued now, with a recent forward-looking price-to-earnings (P/E) ratio of 54. Instead, consider Medtronic, whose Hugo robotic surgery system has been approved in the U.S. for urologic procedures. (The company is also a leader in cardiac devices, spinal products, insulin pumps and more.)

Medtronic’s forward P/E was recently under 17, making its shares more appealingly priced. The Hugo system may boost Medtronic’s growth while it tries to streamline by focusing on its most profitable products. (It’s planning to spin off its diabetes business this year.)

Medtronic also had more than 170 clinical trials underway in fiscal year 2025, when it plowed $2.7 billion into research and development. In its second quarter of fiscal 2026 (which ended Oct. 24, 2025), Medtronic posted revenue of $9 billion, up 6.6% year over year, with net income rising 8%. Chief financial officer Thierry Pieton upped estimates of near-term growth, citing “our outperformance in the first half of the year and confidence … in our revenue growth acceleration.”

Medtronic has a proven track record of success, with 48 consecutive annual dividend increases. Its dividend recently yielded a plump 2.8%. Long-term investors may want to take a closer look.

(The Motley Fool owns shares of and recommends Intuitive Surgical and recommends Medtronic.)

Ask The Fool

From E.L., Forest Hills, Mich.: What does “OTC” mean?

The letters stand for “over the counter.” While thousands of securities trade on the New York Stock Exchange or Nasdaq Stock Market, thousands of others are traded over the counter in the U.S. — meaning not on a major stock exchange.

Those typically belong to small companies that don’t meet the listing requirements for a major exchange, although some big-name international stocks can also be listed in the OTC market. There are three main systems handling OTC stocks; Pink Sheets is the one most likely to include shadier companies. Learn more at Fool.com/investing/stock-market/exchange/otc-markets.

From D.K., Fort Myers, Fla.: What’s a “SaaS” company?

The letters stand for “software as a service.” SaaS companies offer cloud-based software delivery to businesses and individuals, often via subscriptions. So instead of buying and downloading a software package, they pay for on-demand access to it.

This makes updating easy and leaves the SaaS companies with the responsibility of storing customer data and keeping it safe. Some examples of SaaS include tax-preparation software, Zoom video conferencing, Dropbox storage, Docusign, Mailchimp and even Netflix and Spotify.

Some years ago, Microsoft shifted its dominant Office suite (featuring Word, Excel, Outlook and more) to a subscription, and therefore SaaS, model. Investors tend to like the business model because it means customers must sign up to make regular subscription payments, which results in fairly dependable revenue for a SaaS company.

It can also mean a costly hassle for customers to switch to an alternate vendor, keeping them loyal. But customers do benefit by not having to repeatedly buy, install and update software they use.

The Fool’s School

Back in 2011, then-National Taxpayer Advocate Nina E. Olson noted: “The tax code has grown so long that it has become challenging even to figure out how long it is. A search of the Code conducted using the ‘word count’ feature in Microsoft Word turned up 3.8 million words.” The code has not grown much simpler since then.

Thus, millions now use tax-preparation software such as TurboTax, TaxAct, TaxSlayer, H&R Block or FreeTaxUSA, among other options. Many others hire tax professionals. You, too, might want to consider hiring a qualified tax professional to handle your tax returns. A good tax pro may be able to save you a lot of money.

Choose carefully, though, and consider hiring an enrolled agent, who can represent you before the IRS if necessary. (You can find one at NAEA.org.) When you’ve identified a few candidates, interview them. (Many will likely offer a free initial consultation.)

Ask questions such as these:

What’s your background? What are your strengths and weaknesses? (Look for candid answers.)

How do you handle your cases, and what do you expect of your clients?

What are your fees and billing policies? (Ask for an estimate.)

Who exactly will prepare my taxes — you or someone else?

What are your continuing education requirements, and how many hours do you normally take each year? (Enrolled agents must get 72 hours every three years. Someone exceeding the requirements is a good sign.)

If my return is audited, will you represent me before the IRS? (They should go instead of you, not with you. You don’t want the tax pro to outsource audits.)

When will you be able to complete the work? Be sure to choose a pro you’re comfortable with. A quick online search will turn up more info on, and questions to ask, enrolled agents.

My Smartest Investment

From R.P., via email: One of the smartest financial moves I’ve made is to help my son. When he worked during college breaks, his dad and I would match the money he earned and have him deposit it into an individual retirement account. Now that I have a grandson, we have helped him the same way by partially contributing to his Roth IRA.

>The Fool responds: That’s a great move indeed! Most of us need to be saving in earnest for our retirements, and starting early is one of the best strategies for that. A teen or 20-something might have little interest in saving for retirement, but any money they sock away may be able to grow for them for 40 or 50 years. If a $1,000 investment grows for 50 years at 8%, it will become nearly $47,000; if money is added over time, that investment could become a huge sum.

And if the money is growing in a Roth IRA, it can be withdrawn in retirement tax-free. That’s a big plus. Helping your young ones can make a big difference, as it’s often hard for anyone at any age to save and invest meaningful sums. It’s also a smart way to possibly get the next generation(s) interested in investing!

(Do you have a smart or regrettable investment move to share with us? Email it to TMFShare@fool.com.)

Who Am I?

I trace my roots to 1904, when a son of Italian immigrants, who wanted to serve the working class, launched me as the Bank of Italy — in San Francisco.

I took on my current name in 1930, and when my founder died in 1949, I was the largest bank in the world. I issued the first bank credit card in 1958.

In 2008, I bought Countrywide Financial and Merrill Lynch. Today, with a recent market value topping $375 billion, I serve nearly 70 million customers and boast about 3,600 retail financial centers and some 15,000 ATMs.

Who am I?

Forget last week’s question? Find it here.

Last week’s answer: Slack