The Healthcare Equipment segment is one of the areas across the broader healthcare landscape that carries immense innovation prospects and also offers a defensive play. This space is characterized by high entry barriers and stringent regulatory requirements, which favor the established players. Moreover, investors are also enticed amid stable demand for the underlying offerings.
On January 23, global consulting and research firm Precedence Research shared its 2026 outlook for the medical manufacturing industry. It highlighted continued optimism amongst the industry players despite some economic and geopolitical headwinds. According to its estimates, the U.S. medical device market is expected to deliver a growth of 6.2% in 2026, reaching a market size of $346.2 billion. The firm noted that the U.S. remains a dominant player in the global medical device market, attributing this to the ever-increasing adoption of advanced medical technologies for critical diagnosis and treatment.
According to Precedence Research, the segment will continue to evolve in various ways heading into 2026. AI seems to have taken center stage as many companies are transforming themselves to integrate with relevant AI tools. Strategic partnerships and M&A activity will rise, as will spending on product launches and diversification. As part of this research, the firm conducted surveys from within the industry to navigate through opportunities and challenges. One of the surveyed executives stated:
“In these times, if you have a diversified footprint, you can build that agility muscle to react without being completely dependent on one thing.”
With that background, let’s explore our 10 Best Healthcare Equipment Stocks to Buy According to Hedge Funds.
Copyright: nimon / 123RF Stock Photo
Our Methodology
To identify relevant stocks for this article, we screened U.S.-listed healthcare equipment companies with market capitalizations above $2 billion. Also, we shortlisted only stocks with at least 10% upside potential according to TipRanks consensus, as of the February 20 closing.
Next, we identified the number of hedge funds that held positions in these stocks by the end of the third quarter of 2025. Finally, we selected 10 stocks with the highest number of hedge funds holding stakes and ranked them in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. IDEXX Laboratories (NASDAQ:IDXX)
Number of Hedge Fund Holders: 55
IDEXX Laboratories (NASDAQ:IDXX) is one of the 10 best healthcare equipment stocks to buy according to hedge funds.
On February 9, David Westenberg from Piper Sandler maintained his Overweight rating on IDEXX Laboratories (NASDAQ:IDXX). The analyst reduced the target price from $775 to $750, which results in a revised upside of 18%. Westenberg’s downward revision of the price target is based on Piper Sandler’s updated multiple for the stock. It also incorporates 2026 projections that have been rolled forward into 2027.
On February 3, the price target on IDEXX Laboratories (NASDAQ:IDXX) was decreased from $830 to $800 by BTIG analyst Mark Massaro. The analyst maintained an Overweight rating on the stock, which yields almost 26% upside potential following the adjustment.
Massaro reflected on the company’s fourth quarter outperformance in terms of revenues and profitability. He also noted the management’s 2026 guidance, which fueled some disappointment. More precisely, the outlook for pet visits remained below consensus estimates. Management has projected it to drop by 200 basis points during 2026.
IDEXX Laboratories (NASDAQ:IDXX) develops and sells diagnostic products for animal veterinary, livestock, and poultry, and water microbiology testing. With operations across 175 countries worldwide, the company covers in-clinic chemistry, hematology, immunoassay, urinalysis, and coagulation analyzers. It aims to derive recurring revenues with high margins by placing diagnostic instruments for tests and consumables within veterinary clinics.
9. Insulet Corporation (NASDAQ:PODD)
Number of Hedge Fund Holders: 56
Insulet Corporation (NASDAQ:PODD) is one of the 10 best healthcare equipment stocks to buy according to hedge funds.
On February 4, Stifel lowered its price target on Insulet Corporation (NASDAQ:PODD) from $370 to $350. The firm reiterated a Buy rating on the shares, with a revised upside of almost 45%. The revision was part of its broader 2026 estimates for dental, diabetes, and aesthetics segments.
On January 27, Mathew Blackman from TD Cowen downgraded his rating on Insulet Corporation (NASDAQ:PODD) from Buy to Hold. The analyst estimated a target price of $294, implying an upside potential of more than 21%.
Blackman believes the company carries a solid momentum, supported by O5 gaining patient adoption and driving sector-leading growth. While the company benefits from strengths in product design and pharmacy channel access, he cautioned that competitive advantages may narrow as the market evolves. Even though the company still has growth opportunities and a visible pipeline, the firm expects modest upside.
Insulet Corporation (NASDAQ:PODD) focuses on manufacturing and selling insulin management systems through the Omnipod platform. It offers a disposable tubeless pump called Omnipod Insulin Management System, whose design is specific to insulin-dependent diabetes. The company’s strategy revolves around high-volume automated manufacturing in the US and Malaysia, and contract manufacturing in China.
8. Medtronic plc (NYSE:MDT)
Number of Hedge Fund Holders: 58
Medtronic plc (NYSE:MDT) is one of the 10 best healthcare equipment stocks to buy according to hedge funds.
On February 19, Truist analyst Richard Newitter reduced the price target on Medtronic plc (NYSE:MDT) from $107 to $103, while maintaining a Hold rating. Newitter noted that the company delivered modest organic revenue and a slight EPS beat while reaffirming its FY26 outlook. He highlighted relatively solid performance across the business with results exceeding street expectations in three of four segments. Strength in the Diabetes and Cardiovascular divisions helped offset weaker performance in Neurosciences.
On February 18, Barclays analyst Matt Miksic maintained an Overweight rating for Medtronic plc (NYSE:MDT). In the process, he also increased the stock’s price target from $116 to $118, which yields a revised upside of almost 22%.
Miksic highlighted Medtronic’s delivery of solid third-quarter earnings beat. However, the stock’s reaction was tempered following the company’s preliminary commentary outlining potential positives and challenges for fiscal 2027.
Medtronic plc (NYSE:MDT) is a healthcare technology company that sells device-based medical therapies. It covers more than 70 chronic diseases and sells therapies to healthcare networks, clinicians, physicians, and also directly to patients. The business operates in four segments: Cardiovascular, Diabetes, Medical-Surgical, and Neuroscience.
7. GE HealthCare Technologies (NASDAQ:GEHC)
Number of Hedge Fund Holders: 58
GE HealthCare Technologies (NASDAQ:GEHC) is one of the 10 best healthcare equipment stocks to buy according to hedge funds.
On February 5, Patrick Wood from Morgan Stanley lifted the price target on GE HealthCare Technologies (NASDAQ:GEHC) from $80 to $85, maintaining an Equal Weight rating.
The analyst noted the company’s fourth-quarter results, which beat expectations and improved the stock’s risk-reward profile. He believes that demand remains strong, with a strong order backlog and peer results. Wood also pointed towards a highly conducive environment following the company’s hospital CapEx survey.
On January 30, the price target on GE HealthCare Technologies (NASDAQ:GEHC) was raised from $91 to $94 by Jason Bednar from Piper Sandler. The analyst also reiterated his Overweight rating on the stock, which now offers almost 12% upside from the prevailing level. He reflected on a favorable setup for the company during the fourth quarter.
GE HealthCare Technologies (NASDAQ:GEHC) operates within the pharmaceutical diagnostics and medical technology spaces. With a focus on precision care, it develops and markets products along with additional services that are used in the diagnosis, treatment, and monitoring of patients. It is structured in four segments: Advanced Visualization Solutions (AVS), Imaging, Patient Care Solutions (PCS), and Pharmaceutical Diagnostics (PDx).
6. Edwards Lifesciences (NYSE:EW)
Number of Hedge Fund Holders: 64
Edwards Lifesciences (NYSE:EW) is one of the 10 best healthcare equipment stocks to buy according to hedge funds.
On February 11, Richard Newitter from Truist Financial reduced the price target on Edwards Lifesciences (NYSE:EW) from $92 to $89. The analyst reaffirmed his Hold rating on the stock that offers a revised upside potential of more than 11%.
Newitter reflected favorably on the company’s fourth quarter revenue figures, which were higher than expected because of a double-digit growth in TAVR. However, the topline growth did not translate into higher profits.
On February 11, David Roman from Goldman Sachs reiterated his Buy rating on Edwards Lifesciences (NYSE:EW). The analyst lowered the target price from $108 to $95, which still yields a revised upside potential in the high teens. Roman maintained his bullish stance on the stock based on various upside drivers that are expected to play out during the coming year.
Edwards Lifesciences (NYSE:EW) is a medical technology company that offers patient-focused medical products and technologies to cure critical cardiovascular diseases. It also offers critical care monitoring services along with transcatheter heart valve repair & replacement products. Its surgical structural heart solutions include INSPIRIS aortic surgical valve, INSPIRIS RESILIA aortic valve, KONECT RESILIA, and MITRIS RESILIA valve.
5. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 68
Abbott Laboratories (NYSE:ABT) is one of the 10 best healthcare equipment stocks to buy according to hedge funds.
On February 2, the price target on Abbott Laboratories (NYSE:ABT) was reduced from $169 to $142 by Barclays analyst Matt Miksic. The analyst reiterated his Overweight rating on the stock, which offers a revised upside potential of almost 27%.
Miksic’s revisions were based on deflated forecasts and target multiple for the stock, in line with the company’s own outlook. However, he expects the ongoing struggles across the nutrition and diagnostics segments to improve during 2026.
Back on January 23, Lee Hambright from Bernstein reaffirmed an Outperform rating on Abbott Laboratories (NYSE:ABT). The analyst lowered the price target from $154 to $125, which still leads to a low double-digit upside of almost 12%.
Hambright noted that the company’s fourth quarter topline figures of $11.46 billion exhibited 3% organic growth despite missing consensus forecasts by 3%. The Nutrition segment dropped 9% to $1.94 billion, missing the estimates by 12%. This accounted for 75% of the total sales miss for the quarter.
Abbott Laboratories (NYSE:ABT) is a leading name in the healthcare industry that is involved in the discovery, development, and marketing of healthcare products across the globe. The business is segregated into four segments, i.e., Diagnostic Products, Established Pharmaceutical Products, Medical Devices, and Nutritional Products.
4. DexCom Incorporated (NASDAQ:DXCM)
Number of Hedge Fund Holders: 71
DexCom Incorporated (NASDAQ:DXCM) is one of the 10 best healthcare equipment stocks to buy according to hedge funds.
On February 13, William Plovanic from Canaccord Genuity reduced the price target on DexCom Incorporated (NASDAQ:DXCM) from $99 to $95. The analyst maintained his Buy rating on the stock.
Plovanic noted that fourth-quarter results and 2026 outlook met expectations, as the company’s strategy remains unchanged. Management continues to focus on product refinements across the U.S. market, aimed at preserving its leadership in glucose sensors. The firm expects the 15-day G7 to become a dominant product this year, supporting margins over time. Internationally, DexCom Incorporated (NASDAQ:DXCM) plans to offer tiered sensor solutions while continuing efforts to strengthen insurance coverage for CGM.
On February 13, Baird analyst Jeff Johnson reaffirmed his Outperform rating on DexCom Incorporated (NASDAQ:DXCM). The analyst also raised the stock’s price target from $82 to $87, which leads to a revised upside potential of almost 20%. Johnson’s revisions came at the back of the company’s fourth quarter results. With no substantial surprises, he noted certain favorable factors that led him to revise his model.
DexCom Incorporated (NASDAQ:DXCM) is a medical device company that sells continuous glucose monitoring (CGM) systems. These systems efficiently manage diabetes and metabolic conditions by tracking glucose levels every few minutes. Some of its products include DexCom G6, DexCom G7, DexCom Share, DexCom Real-Time API, and DexCom ONE.
3. Stryker Corporation (NYSE:SYK)
Number of Hedge Fund Holders: 72
Stryker Corporation (NYSE:SYK) is one of the 10 best healthcare equipment stocks to buy according to hedge funds.
On February 2, the price target on Stryker Corporation (NYSE:SYK) was raised from $462 to $469 by Barclays. The firm reaffirmed its Overweight rating on the stock that yields a revised upside potential of more than 23%. Without any deviations from the model, the firm believes there is significant upside for the company’s growth estimates for 2026.
On January 30, Needham analyst Mike Matson reiterated his Buy rating for Stryker Corporation (NYSE:SYK). The analyst also raised his price target on the stock from $448 to $454, which now offers a revised upside potential of almost 20%.
Matson highlighted the company’s fourth quarter revenue and EPS outperformance, acknowledging an impressive performance across the board. He noted that such broader strength resulted from high procedure volumes, new offerings, and the company’s capital equipment demand backlog.
Stryker Corporation (NYSE:SYK) is a medical technology company, structured into 2 segments, i.e., MedSurg & Neurotechnology, and Orthopaedic. The company aims to offer innovative products and solutions across these areas to improve patient outcomes. Some of its offerings include surgical equipment, navigation systems, endoscopic and communications systems, emergency medical equipment, thoracolumbar systems interbody systems and degenerative therapies.
2. Intuitive Surgical (NASDAQ:ISRG)
Number of Hedge Fund Holders: 99
Intuitive Surgical (NASDAQ:ISRG) is one of the 10 best healthcare equipment stocks to buy according to hedge funds.
On January 27, Freedom Capital increased the price target on Intuitive Surgical (NASDAQ:ISRG) from $560 to $610, and also upgraded its rating on the stock from Hold to Buy. The upward revision in the target price now leads to more than 11% upside potential at the prevailing level.
The firm attributed its rating upgrade on Intuitive Surgical (NASDAQ:ISRG) to the elevated topline forecast for the next 2 years. It sees the launch of da Vinci 5 as a key driver of the company’s system sales and procedure volumes during 2026.
On January 26, the price target on Intuitive Surgical (NASDAQ:ISRG) was raised from $686 to $712 by Matt Miksic from Barclays. The analyst also maintained his Overweight rating on the stock, which offers a revised upside potential of almost 42%. Miksic shared these revisions after the company’s fourth quarter announcements. He noted that management’s 2026 forecasts appear similar to prior estimates.
Intuitive Surgical (NASDAQ:ISRG) operates within the robotic-assisted surgery market. The company is involved in the manufacturing and marketing of products that facilitate minimally invasive care, ensuring improved quality and access. Its flagship offerings are the da Vinci Surgical System and the Ion endoluminal system.
1. Boston Scientific (NYSE:BSX)
Number of Hedge Fund Holders: 102
Boston Scientific (NYSE:BSX) is one of the 10 best healthcare equipment stocks to buy according to hedge funds.
On February 17, the price target on Boston Scientific (NYSE:BSX) was reduced from $112 to $109 by Canaccord Genuity analyst William Plovanic. The analyst reiterated his Buy rating on the stock, which still yields a revised upside potential of more than 46%.
Plovanic shared his revisions following the management’s implementation of organizational changes. He also pointed towards the earnings call that has led to some adjustments in estimates.
On February 6, the price target on Boston Scientific (NYSE:BSX) was reduced from $130 to $112 by Bernstein analyst Lee Hambright. The analyst maintained his Outperform rating on the stock, which still offers a revised upside potential of more than 50%.
Hambright highlighted investor concerns about rising PFA competition, along with third-party data fueling fears that the company could fall short of expectations in the fourth quarter. Despite the CEO’s attempt to ease concerns last month, U.S. EP sales for the quarter totaled $606 million. These figures remained flat year-on-year and were 6% below the consensus estimates.
Boston Scientific (NYSE:BSX) specializes in medical devices for interventional specialties such as cardiovascular, endo-surgery, and neuro-modulation. The company operates through MedSurg and Cardiovascular segments, and offers a range of devices, including biliary stent systems, electrocautery enhanced delivery systems, direct visualization systems, and single-use duodeno-scopes.
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