Medtronic Is Doing a Spinoff. What It Means for Our Stock Pick.

Medical device maker


Medtronic


is spinning off two business units to try to drive higher growth. The market isn’t impressed. 

In theory, it should be. Spinoffs are supposed to streamline operations of the new company, allow its management team to operate more single-mindedly, sometimes allocate capital more efficiently—and ultimately increase value for shareholders because they now own stock in both the parent and the spinoff.