In this article, we will discuss the 10 Best Medical Technology Stocks to Invest In.
Medical technology, or MedTech, companies ensure that the broader healthcare industry has the tools needed to diagnose, treat, monitor, or prevent medical conditions. In other words, the firms bridge the gap between healthcare and engineering. The MedTech space matured into a separate global industry in the early 1990s after shifting from a collection of small divisions and specialists of electronics giants. It has since then accelerated so fast that, according to Ernst & Young, the market was worth $584 billion in 2025. This was after posting top-line growth for seven successive years.
A separate report by Future Market Insights Inc valued the MedTech market at $549 billion as of 2025, just a few billions shy of EY’s. The researchers projected that this value would climb to $853 billion in 2035, which is an expansion rate of 4.5% over ten years. One of the key drivers of this growth that Future Market Insights Inc pointed to was the integration of artificial-intelligence and digital health solutions in medical technologies.
“AI-powered diagnostics, robotic-assisted surgeries, and remote monitoring devices are revolutionizing patient care by enhancing accuracy, improving efficiency, and reducing hospital stays,” the report reads in part.
For EY, although faced by a hostile global trade environment and turbulent macroeconomics, the global MedTech industry will continue to perform well. Just like Future Market Insights Inc, EY highlighted digital health and AI as the reason the industry will weather headwinds. Other factors are robust investment activity and surging revenues, noted EY.
Perhaps this explains why Bob Lang, chief options analyst at Explosive Options, believes healthcare will offer the most important off-ramp to investors who have grown fatigued with the broader tech sector. He said: “There are many investors right now that are looking at technology and saying, ‘how much longer, how much further is it gonna go?’”
“I think people are looking for yield, they’re looking for better-performing stocks and the healthcare sector is being one of them,” he added.
For Raj Ganguly of B Capital, energy and healthcare will offer the biggest investment opportunities in 2026. Interestingly, Ganguly sees AI being a major growth catalyst in the healthcare sector, particularly in MedTech. Ganguly argued that AI is spurring growth in MedTech because it is an efficiency multiplier across the entire value chain; that is, from initial R&D to commercial sales.
That said, this article highlights some of the notable names in MedTech that warrant investor attention.
Our Methodology
We used a multistep screening method to identify the best medical technology stocks for investment, which began with an initial pool curated from MedTech-focused ETFs, the Finviz stock screener, and notable financial media sources including CNN. Only pure-play MedTech stocks were considered. From this group, we narrowed in on leading names by analyzing Q3 2025 hedge fund ownership data from the Insider Monkey database, and also filtered for stocks with a minimum analyst-projected upside potential of 20% as of February 13, 2026. The final selection is ranked in ascending order by the number of hedge funds holding their shares.
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).
Best Medical Technology Stocks to Invest In
10. ResMed Inc. (NYSE:RMD)
Number of Hedge Fund Holdings: 43
Stock Upside: 27.97%
ResMed Inc. (NYSE:RMD) is one of the best medical technology stocks to invest in. On January 30, KeyBanc Capital Markets lifted its price target on ResMed Inc. (NYSE:RMD) to $302 from $299 and maintained an Overweight rating.
KeyBanc described ResMed’s second-quarter fiscal 2026 results as largely positive and supportive of its overall investment thesis for the company. The firm highlighted that ResMed’s Q2 revenue exceeded expectations, and that strength was concentrated in two core hardware segments: the Masks & Accessories and Devices businesses. This strength, the analysts said, drove the outperformance and even offset the underwhelming figures from the company’s Software as a Service (SaaS) segment.
The analysts also expressed encouragement about ResMed’s decision to raise the low end of its gross margin guidance for fiscal 2026. To them, this move is evidence of improving profitability expectations for the remainder of the year despite already maintaining a healthy gross profit margin of 60.69%.
On the same day, January 30, RBC Capital Markets raised its price target on ResMed to $314 from $311. The firm left the Outperform rating on the stock unchanged.
RBC Capital raised ResMed’s price target after strong quarterly results. The company posted double‑digit growth in revenue and earnings, beating estimates. RBC highlighted solid performance across markets, improving margins, and operating leverage. It kept an Outperform rating, citing ResMed’s earnings outlook, fair valuation, and potential shareholder returns.
ResMed Inc. (NYSE:RMD) develops and manufactures medical devices and digital health solutions for sleep apnea, chronic obstructive pulmonary disease, and other respiratory conditions. Its products include CPAP machines, masks, and cloud-connected software platforms that enable remote patient monitoring and management.
9. Globus Medical Inc. (NYSE:GMED)
Number of Hedge Fund Holdings: 46
Stock Upside: 26.12%
Globus Medical Inc. (NYSE:GMED) is one of the best medical technology stocks to invest in. On January 30, Needham upgraded its rating on Globus Medical Inc. (NYSE:GMED) from Hold to Buy and set the price target at $112. The upgrade followed Globus’s preliminary fourth-quarter revenue announcement, which Needham viewed as a positive signal for the company’s financial performance.
Needham’s analysis identified expanding EBITDA margins, including an estimated 20% EBITDA margin for Nevro, as a driver of improved earnings expectations for fiscal 2026. The firm expects margin expansion to potentially lift Globus’s earnings per share guidance by a high-single to low-double digit percentage, according to its internal assessment.
Alongside margins, Needham noted the possibility of improving organic revenue growth. The analysts believe this could lead to upside relative to Globus’s existing revenue guidance.
Separately, on January 26, TD Cowen initiated coverage on Globus with a Buy rating and set a $110 per share price target. TD Cowen acknowledged that Globus had faced significant negative sentiment, yet the analysts see potential for further outperformance. This will happen if investors continue to appreciate Globus’s longer-term earnings prospects, the analysts noted.
TD Cowen pointed out some of the areas where Globus still has opportunities for growth; these are progress within its Nevro business segment, expansion into international markets, and enabling technologies. Another supportive context that the firm pointed to is Globus’s historical share performance and financial strength.
Globus Medical Inc. (NYSE:GMED) develops and commercializes medical devices and technologies for musculoskeletal disorders. Its portfolio includes implantable devices, biologics, and surgical instruments used in spinal, orthopedic trauma, and joint reconstruction procedures.
8. STERIS plc (NYSE:STE)
Number of Hedge Fund Holdings: 46
Stock Upside: 20.79%
STERIS plc (NYSE:STE) is one of the best medical technology stocks to invest in. On February 5, Citizens reiterated its Market Outperform rating on STERIS plc (NYSE:STE) and kept the $280 price target on the shares. The firm made this move in reaction to STERIS’s Q3 FY2026 financial results.
STERIS beat revenue expectations by about 1% and matched profit forecasts. Management said growth was strong, with revenue up 7.1% over the past year and margins holding at 44.5%. Tariffs are expected to cost $55 million in FY2026, but cost control helped offset impacts. Despite this, STERIS kept its free cash flow outlook at $850 million, which analysts see as a strong position in medical technology.
Independent of the analyst action, on February 4, STERIS released its Q3 2026 earnings in which it reported adjusted earnings per share of $2.53. This figure matched Wall Street expectations. Quarterly revenue came in at $1.50 billion, exceeding estimates of about $1.48 billion. The figure is also a 9% year over year increase, which management explained was driven by demand across multiple business lines.
The company posted about 8% organic revenue growth on a constant-currency basis. This indicates underlying demand expansion rather than currency-related gains, noted management. Given this growth, STERIS reaffirmed its full-year fiscal 2026 guidance.
STERIS plc (NYSE:STE) provides medical technology products and services focused on infection prevention and procedural support. Its offerings include sterilizers, surgical tables, automated endoscope reprocessors, and operating room integration systems.
7. Inspire Medical Systems Inc. (NYSE:INSP)
Number of Hedge Fund Holdings: 48
Stock Upside: 80.22%
Inspire Medical Systems Inc. (NYSE:INSP) is one of the best medical technology stocks to invest in. On February 12, Stifel lowered its price target on Inspire Medical Systems Inc. (NYSE:INSP) to $95 from $110 and maintained a Buy rating on the stock. The decision followed Inspire’s revision to its 2026 guidance, which Stifel linked to persistent reimbursement challenges affecting the company’s operations and billing environment.
Stifel said the situation has reached a “worst‑case scenario,” with the 64582 code billed using a ‑52 modifier. This change further cuts physician pay for a procedure that is already underpaid.
Despite cutting the price target, Stifel observed that Inspire’s projected 2026 revenue growth remains in the high single digits at the midpoint of guidance. Also, Inspire increased its EPS estimates for 2026-2031, which Stifel said demonstrates potential leverage in the company’s business model. The firm also noted that Inspire’s historical growth has been strong; the company has experienced a multi-year compound annual growth rate.
On the same day, February 12, Baird and Wells Fargo downgraded their ratings on Inspire. The firms pointed to ongoing uncertainty around physician reimbursement and a weaker growth outlook for 2026.
Baird cut its rating to Neutral, saying recent reimbursement developments have made it more difficult to see a clear path to higher utilization and new account growth. This clouds visibility into future performance, said Baird.
On its part, Wells Fargo lowered its rating to Equal Weight from Overweight and reduced its price target to $70 from $145. The firm cited ongoing uncertainty related to physician fees tied to the rollout of the company’s Inspire V system.
Inspire’s Q4 revenue rose 12% year over year, with earnings of $1.65 per share beating expectations and margins improving to 17.5%. However, management cut its 2026 revenue growth outlook to 4–10% from about 10%–11%, citing reimbursement changes tied to a new CPT code with a ‑52 modifier that could reduce physician payments by 10%–50%.
Analysts warned this uncertainty may slow procedure volumes and new account openings, though Inspire still expects to stay profitable with margins of 6%–8%. Wells Fargo noted some doctors may stick with Inspire IV, which avoids the reimbursement risk, limiting near‑term demand for the newer system.
Inspire Medical Systems Inc. (NYSE:INSP) develops and commercializes medical technology solutions for obstructive sleep apnea. Its primary product is the Inspire system, a neurostimulation device implanted to deliver mild hypoglossal nerve stimulation, keeping the airway open during sleep.
6. IDEXX Laboratories Inc. (NASDAQ:IDXX)
Number of Hedge Fund Holdings: 55
Stock Upside: 28.00%
IDEXX Laboratories Inc. (NASDAQ:IDXX) is one of the best medical technology stocks to invest in. On February 3, BTIG lowered its price target on IDEXX Laboratories Inc. (NASDAQ:IDXX) to $800 from $830 and maintained a Buy rating. The firm cited concerns about IDEXX’s 2026 guidance despite robust Q4 2025 earnings performance.
IDEXX reported strong fourth-quarter results, with revenue of $1.09 billion, up 14% from last year and above analyst expectations of $1.072 billion. Earnings per share rose 18% to $3.08, beating the Street’s $2.93 estimate. The company remains highly profitable, with a 61.7% gross margin and a return on equity of 65% over the past 12 months.
The companion animal business, IDEXX’s core segment, grew 15% to $998 million, driven by strong instrument revenue of $58 million, up 76% year-over-year. Growth was supported by 1,940 InVueDx system placements, as well as strong demand for Catalyst and SediVue products. This continues IDEXX’s long-term trend of about 10% annual revenue growth and aligns with management’s strategy of share buybacks to boost shareholder value.
For 2026, IDEXX expects revenue of $4.63–$4.72 billion and EPS of $14.29–$14.80, with operating margins slightly improving to 32%–32.5%. BTIG noted a 200-basis-point drag from fewer pet visits, mainly from lower-income owners, but expects 4% price growth globally. The company also plans around 5,500 new InVueDx system placements next year, compared with 6,400 in 2025, to help offset these headwinds.
IDEXX Laboratories Inc. (NASDAQ:IDXX) develops, manufactures, and distributes diagnostic and information technology products for veterinary, livestock, poultry, dairy, and water testing markets. Its offerings include point-of-care diagnostic instruments, rapid assay test kits, veterinary reference laboratory services, and microbiological contaminant testing systems.
5. Insulet Corporation (NASDAQ:PODD)
Number of Hedge Fund Holdings: 56
Stock Upside: 57.79%
Insulet Corporation (NASDAQ:PODD) is one of the best medical technology stocks to invest in. On February 5, Insulet Corporation (NASDAQ:PODD) announced that its Omnipod 5 Automated Insulin Delivery (AID) system is now commercially available in the Middle East. The specific countries mentioned were the United Arab Emirates (UAE), Saudi Arabia, Qatar, and Kuwait.
According to Insulet, the Omnipod 5 system automatically adjusts insulin delivery every five minutes. It achieves this by communicating with compatible continuous glucose monitoring sensors and is designed to eliminate the need for multiple daily injections, simplifying diabetes management, noted Insulet.
The company also launched Omnipod Discover, a web-based data management and analytics platform for users, caregivers, and healthcare providers. It organizes and visualizes glucose and insulin delivery data to support diabetes care decisions.
In a separate update, on February 3, Insulet entered into an addendum to its existing Purchase Agreement with NXP USA, Inc. The addendum is effective from January 1, 2026, and extends a long-term supply arrangement that was originally established on October 12, 2017.
Some of the elements amended in the updated agreement include pricing terms, product volume commitments, and product order flexibility. Others are contractual conditions that affect Insulet’s supply chain planning.
According to Insulet, the updated terms are intended to maintain continuity of supply for components used in its medical devices. They also provide revised commercial terms that may affect cost structure and operational flexibility.
Insulet Corporation (NASDAQ:PODD) designs, manufactures, and sells insulin delivery systems for people with diabetes. Its flagship product is the Omnipod Insulin Management System, a tubeless, wearable insulin pump that provides continuous subcutaneous insulin infusion and integrates with glucose monitoring technologies.
4. GE HealthCare Technologies Inc. (NASDAQ:GEHC)
Number of Hedge Fund Holdings: 58
Stock Upside: 20.79%
GE HealthCare Technologies Inc. (NASDAQ:GEHC) is one of the best medical technology stocks to invest in. On February 12, GE HealthCare Technologies Inc.’s (NASDAQ:GEHC) board declared a $0.035 per share cash dividend Q1 2026. The dividend will be disbursed on May 15, 2026, to shareholders of record as of April 3, 2026. This dividend amount is unchanged since Q4 2025.
Meanwhile, GE HealthCare announced the US launch of ReadyFix on February 9. ReadyFix is a remote fleet management solution designed to help healthcare systems monitor and support uptime for connected medical devices. The system collects real-time device data to enable remote diagnostics, repair, proactive maintenance and performance optimization, said GE HealthCare. The company added that the solution allows biomedical engineering teams to deploy standardized clinical configurations by department. They can schedule and install software updates remotely, and access diagnostic tools and logs without being physically present at each device’s location.
According to GE HealthCare, ReadyFix is intended to reduce device disruptions and downtime. As such, it will help maintain continuity of cardiac care by supporting consistent performance of ECG workstations used for heart monitoring and diagnostic readings.
GE HealthCare’s management noted that this launch is timely considering the increasing complexity in hospital device fleets. Biomedical teams may manage large numbers of connected devices and face operational strain from maintenance workloads, management stated.
GE HealthCare Technologies Inc. (NASDAQ:GEHC) designs, develops, and manufactures medical technology, pharmaceutical diagnostics, and digital solutions. Its portfolio includes diagnostic imaging systems, ultrasound devices, patient monitoring equipment, imaging agents used in medical scanning, and healthcare IT platforms.
3. Edwards Lifesciences Corporation (NYSE:EW)
Number of Hedge Fund Holdings: 64
Stock Upside: 30.82%
Edwards Lifesciences Corporation (NYSE:EW) is one of the best medical technology stocks to invest in. On February 11, Stifel reiterated its Buy rating on Edwards Lifesciences and kept its price target at $110. Stifel made the move right after Edwards Lifesciences shared its Q4 2025 earnings on February 10. The results showed that quarterly sales went up by 11.6% to $1.57 billion and beat Stifel and consensus estimates of $1.54 billion and $1.55 billion, respectively.
In the earnings report, Edwards Lifesciences’ transcatheter aortic valve replacement (TAVR) sales, which account for about 74% of the company’s 2025 revenue, grew 10.6% year over year during the quarter. Stifel noted that this segment was the main driver of the company’s blowout performance.
Edwards Lifesciences reported quarterly EPS of $0.58, which fell short of Stifel and consensus expectations of $0.62. This happened because the company spent more than expected on sales, general, and administrative costs to support its business and growth plans.
Management kept its 2026 financial outlook and said spending will be more controlled. They pointed to strong TAVR growth drivers like good clinical results, new European guidelines, a competitor leaving the market, and rising use of the Sapien 3 Ultra Resilia valve with solid pricing.
Edwards Lifesciences Corporation (NYSE:EW) develops and manufactures medical technology focused on structural heart disease and critical care monitoring. Its primary products include transcatheter heart valves, surgical heart valves and hemodynamic monitoring systems for intensive care settings.
2. DexCom Inc. (NASDAQ:DXCM)
Number of Hedge Fund Holdings: 71
Stock Upside: 30.61%
DexCom Inc. (NASDAQ:DXCM) is one of the best medical technology stocks to invest in. On February 12, DexCom Inc. (NASDAQ:DXCM) shared its Q4 2025 earnings and reported $1.26 billion in quarterly revenue. This was well ahead of the $1.25 billion that Wall Street expected, and a 13% year over year growth. According to management, this growth was fueled by robust sales of systems like the G7 and the newly launched over-the-counter Stelo for non-insulin users.
DexCom said that EPS for the quarter came in at $0.68 on a non-GAAP basis, and surpassed expectations by $0.03. Gross margins also grew by 63.5%, up from 59.4% the prior year, due to what management described as manufacturing optimizations and lower freight costs.
For the full year 2025, revenue totaled $4.662 billion, up 16% year over year, said DexCom. This exceeded the company’s updated guidance range of $4.63-$4.65 billion, as Stelo generated $130 million in sales and helped drive category adoption, noted management.
In light of the robust performance, CEO Jake Leach noted that 2025 was another great year for the company. “We significantly expanded access to DexCom CGM and launched our DexCom G7 15 Day System,” he said, and emphasized momentum from product advancements and market expansions like coverage in Québec for type 2 adults.
Looking ahead, management reiterated 2026 revenue guidance of $5.16 billion to $5.25 billion. They cited continued category expansion, Stelo’s incremental contribution (about 1% to growth), and new features.
DexCom Inc. (NASDAQ:DXCM) designs, manufactures, and sells continuous glucose monitoring (CGM) systems for people with diabetes. Its core products include the Dexcom G6 and G7 CGM devices, which provide real-time glucose readings through wearable sensors and transmit data to smartphones or insulin delivery systems.
1. Boston Scientific Corporation (NYSE:BSX)
Number of Hedge Fund Holdings: 102
Stock Upside: 41.66%
Boston Scientific Corporation (NYSE:BSX) is one of the best medical technology stocks to invest in. On February 6, RBC Capital lowered its price target on Boston Scientific Corporation (NYSE:BSX) to $115 from $130 and maintained an Outperform rating on the shares.
RBC made the move in response to Boston Scientific’s Q4 2025 earnings share on February 4. The firm attributed the price target cut to Boston Scientific’s initial 2026 guidance and perceived weakness in its electrophysiology business, which missed quarterly consensus expectations. RBC Capital indicated that investors appear to be in a “wait and watch” mode until all electrophysiology competitors report their results.
Boston Scientific’s stock now leans heavily on the upcoming CHAMPION‑AF trial results, due March 28, which analysts see as a key event that could boost earnings.
According to the earnings results, Boston Scientific’s quarterly revenue reached $5.29 billion. This is a 12.7% organic year over year growth, and slightly surpassed consensus estimates. Adjusted EPS were $0.80 and surpassed the $0.78 Wall Street expected.
Separately, on February 6, Bernstein SocGen lowered its price target on Boston Scientific to $112 from $130 and maintained an Outperform rating. Bernstein said it trimmed the price target because Boston Scientific missed US electrophysiology sales. The sales came in at $606 million for the fourth quarter, 6% below consensus estimates. The firm also noted a 2% miss in US Watchman sales for the quarter.
Bernstein stated that there is huge upside for Boston Scientific at a 21.5x valuation. The firm cited growth opportunities in electrophysiology through new launches, new data, and ambulatory surgery center expansion.
Boston Scientific Corporation (NYSE:BSX) develops and manufactures medical devices used in interventional medical specialties, including cardiology, endoscopy, urology, and neuromodulation. Its portfolio includes stents, catheters, implantable defibrillators, pacemakers, and devices for pain management and deep brain stimulation.
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