In this article, we will look at the 10 Undervalued Medical Device Stocks to Buy Now.
According to a report by Mordor Intelligence, the medical device industry is valued at $681.57 billion as of 2025. It is expected to grow at a compound annual growth rate (CAGR) of 6.99% between 2025 and 2030, reaching $955.49 billion at the end of the forecast period. The largest market for the industry at the present is North America. However, the Asia Pacific region takes the lead as the fastest growing.
On July 7, CNBC’s Chery Kang and Elaine Yu appeared on Squawk Box Asia and talked about China’s move to impose reciprocal tariffs on the import of medical devices from the European Union ahead of the upcoming EU-China summit scheduled for this month.
Elaine Yu said that trade tensions between China and the EU are heating up, and that covers medical devices as well. China’s Finance Ministry stated that it is restricting government purchases of medical devices from Europe worth more than 45 million yuan, which translates to around $6.3 million.
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Yu further stated that this impacts only imports, not goods manufactured by EU-funded companies in China. This is a counter measure for a similar move by the European Union on Chinese companies in June. Beijing has thus framed this move as “defensive” and “necessary.” China’s Commerce Ministry released a statement of July 6, stating:
“China has no choice but to take reciprocal restrictive measures to safeguard the legitimate rights and interests of Chinese enterprises and maintain a fair competition environment.”
With these trends in view, let’s look at the 10 undervalued medical device stocks to buy now.
A doctor wearing gloves guiding a medical device into the human body.
Our Methodology
We used Finviz to make a list of the medical device stocks with a forward P/E below 15 and chose the top 10 with the highest number of hedge fund holders as of Q1 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Note: All data was recorded on July 14.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Undervalued Medical Device Stocks to Buy Now
10. InMode Ltd. (NASDAQ:INMD)
Forward P/E: 9.01
Number of Hedge Fund Holders: 20
InMode Ltd. (NASDAQ:INMD) is one of the best undervalued medical device stocks to buy now. In a report released on July 10, Caitlin Cronin from Canaccord Genuity maintained a Hold rating on InMode Ltd. (NASDAQ:INMD) and set a price target of $15.00.
InMode Ltd. (NASDAQ:INMD) announced in its fiscal Q1 2025 results that it decided to revise its full-year guidance due to continuous uncertainty regarding the US economic outlook and persistent market weakness.
Based on the preliminary results, InMode Ltd. (NASDAQ:INMD) expects non-GAAP gross margin for fiscal Q2 2025 to be in the 79% to 80% range, and revenue to be in the range of $95.4 million to $95.5 million.
The company expects full-year revenue for 2025 to be in the range of $365 million to $375 million, compared to prior guidance of $395 million to $405 million.
InMode Ltd. (NASDAQ:INMD) develops, designs, manufactures, and markets minimally invasive aesthetic medical products used for a number of procedures, such as wrinkle reduction, permanent hair reduction, facial skin rejuvenation, cellulite treatment, pigmented lesions, and more.
9. AdaptHealth Corp. (NASDAQ:AHCO)
Forward P/E: 8.88
Number of Hedge Fund Holders: 21
AdaptHealth Corp. (NASDAQ:AHCO) is one of the best undervalued medical device stocks to buy now. In a report released on July 1, David S Macdonald from Truist Financial maintained a Buy rating on AdaptHealth Corp. (NASDAQ:AHCO) without a price target.
AdaptHealth Corp. (NASDAQ:AHCO) reported $95.5 million in cash flow from operations in fiscal Q1 2025, an increase from $49.0 million. Free cash flow for the quarter reached negative $0.1 million, compared to negative $38.9 million previously. Net revenue for the quarter, however, underwent a 1.8% decline to $777.9 million.
AdaptHealth Corp. (NASDAQ:AHCO) provides home healthcare equipment, supplies, and related services. The company’s focus is on sleep therapy equipment for obstructive sleep apnea, oxygen, and related chronic therapy services, HME medical devices and supplies for wound care, diabetes, urological, and more.
