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.
READ ALSO: 13 Cheap Healthcare Stocks with Huge Upside Potential and 13 Cheap Stocks with Huge Upside Potential.
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.
8. ZimVie Inc. (NASDAQ:ZIMV)
Forward P/E: 10.63
Number of Hedge Fund Holders: 22
ZimVie Inc. (NASDAQ:ZIMV) is one of the best undervalued medical device stocks to buy now. On June 5, ZimVie Inc. (NASDAQ:ZIMV) announced the launch of its RealGUIDE Software Suite and Implant Concierge service in Japan.
The launch of the service in the Japenese market provides dentists expanded access to a digital dental implant ecosystem that extends from implant planning to placement and offers vertically integrated, end-to-end solutions.
Management reported that the dental implant market opportunity is significant in Japan, and the country is ZimVie Inc.’s (NASDAQ:ZIMV) largest market in the APAC region.
RealGUIDE software is the first complete cloud-based solution of its kind, and offers dentists all they need for precise implant planning, restorative design, and surgical guides to deliver time, workflow, and cost efficiencies. Implant Concierge is a virtual outsourcing service that aims to simplify and streamline guided surgery and implant treatment planning.
ZimVie Inc. (NASDAQ:ZIMV) manufactures, designs, and distributes medical devices and surgical instruments. The company’s operations are divided into the Spine Products and Dental Products segments.
7. CONMED Corporation (NASDAQ:CNMD)
Forward P/E: 11.66
Number of Hedge Fund Holders: 23
CONMED Corporation (NASDAQ:CNMD) is one of the best undervalued medical device stocks to buy now. On June 12, Needham downgraded CONMED Corporation (NASDAQ:CNMD) to Hold from Buy without a price target.
The firm told investors in a research note that CONMED Corporation (NASDAQ:CNMD) is experiencing a drop in its long-term growth rate, primarily attributed to slower AirSeal and Buffalo Filter growth. It believes that slower revenue growth is likely to result in slower earnings growth and more gradual margin improvement for the company.
The firm further reasoned that CONMED Corporation’s (NASDAQ:CNMD) debt levels restrict its potential to repurchase shares or acquire new growth drivers. It contended that the company’s outlook has deteriorated, and the shares are no longer at a discount provided that peer multiples have contracted.
CONMED Corp (NASDAQ:CNMD) is a medical technology company that provides surgical devices and equipment for minimally invasive procedures. Healthcare professionals, such as surgeons, use their products in a range of specialties, such as general surgery, orthopedics, thoracic surgery, gynecology, and gastroenterology. The company’s product line comprises general surgery and orthopedic surgery. General surgery comprises endo-mechanical instrumentation primarily used for minimally invasive gastrointestinal and laparoscopic procedures. The orthopedic surgery product line comprises lower extremities, sports medicine implants and instrumentation, specialty-powered surgical instruments, and more.
6. Bioventus Inc. (NASDAQ:BVS)
Forward P/E: 9.86
Number of Hedge Fund Holders: 24
Bioventus Inc. (NASDAQ:BVS) is one of the best undervalued medical device stocks to buy now. On July 7, Cantor Fitzgerald analyst Ross Osborn initiated coverage of Bioventus Inc. (NASDAQ:BVS) with an Overweight rating and $12 price target.
The company reported a 4.3% decline in its worldwide revenue for fiscal Q1 2025 to $123.9 million from $129.5 million in the same period last year. The drop reflects the effects of the previous year’s divestiture of the Advanced Rehabilitation Business.
Bioventus Inc. (NASDAQ:BVS) also reported a 5.0% growth in organic revenue in the quarter, attributed to positive organic growth across all three businesses.
Global revenue in Paint Treatments rose 3.9% to $58.9 million, driven by double-digit growth in demand for Durolane. Durolane is a single-injection hyaluronic acid therapy that targets knee osteoarthritis.
Similarly, Surgical Solutions also underwent a 7.0% growth in global revenue in the quarter to $45.2 million, attributed to double-digit growth from Ultrasonics due to strong capital equipment purchases in the US.
Bioventus Inc. (NASDAQ:BVS) is a medical technology company that develops and commercializes proprietary orthobiologic products to treat musculoskeletal conditions. It operates through the following business segments: Active Healing Therapies-U.S, Active Healing Therapies-International, Surgical and BMP.
5. Avanos Medical, Inc. (NYSE:AVNS)
Forward P/E: 14.04
Number of Hedge Fund Holders: 29
Avanos Medical, Inc. (NYSE:AVNS) is one of the best undervalued medical device stocks to buy now. On June 9, Avanos Medical, Inc. (NYSE:AVNS) announced the appointment of Camille Chang Gilmore as senior vice president, SVP, and chief human resources officer.
The transition would put her in charge of all aspects of the company’s people strategy, including workforce planning, talent acquisition and development, and leadership development and employee experience.
Avanos Medical, Inc. (NYSE:AVNS) announced $167.5 million in total net sales in fiscal Q1 2025, a 0.8% growth from the same period last year. Net income for the quarter reached $6.6 million, compared to net income from continuing operations of $0.5 million a year ago.
Adjusted net income also rose to $12.0 million, compared to $10.1 million in the same period last year.
Avanos Medical, Inc. (NYSE:AVNS) is a medical technology company that delivers medical device solutions and products to healthcare providers and patients.
4. Enovis Corporation (NYSE:ENOV)
Forward P/E: 11.2
Number of Hedge Fund Holders: 31
Enovis Corporation (NYSE:ENOV) is one of the best undervalued medical device stocks to buy now. In a report released on July 8, Vijay Kumar from Evercore ISI maintained a Buy rating on Enovis Corporation (NYSE:ENOV) and set a price target of $46.00.
The company reported continued commercial momentum in fiscal Q1 2025 results, with net sales for the quarter reaching $559 million and reported an 8% growth on a reported basis and 9% rise on a comparable basis from the same quarter last year. Reconstructive sales for the quarter rose 11% year-over-year on a reported basis.
Enovis Corporation’s (NYSE:ENOV) fiscal Q1 2025 results show a rebound in growth in Recon, net sales for which grew 11% on a reported and comparable basis. The company also showed accelerating momentum in new product introductions and continued execution in P&R, reflecting a 5% growth on a reported basis and 7% on a comparable growth basis.
Enovis Corporation (NYSE:ENOV) is a medical technology growth company that develops clinically differentiated solutions to transform workflows and generate better patient outcomes. The company operates through the Prevention & Recovery and Reconstructive segments.
3. QuidelOrtho Corporation (NASDAQ:QDEL)
Forward P/E: 12.64
Number of Hedge Fund Holders: 32
QuidelOrtho Corporation (NASDAQ:QDEL) is one of the best undervalued medical device stocks to buy now. On June 30, RBC Capital analyst Conor McNamara maintained a Buy rating on QuidelOrtho Corporation (NASDAQ:QDEL) and set a price target of $60.00.
The company has strategic plans to drive growth in Molecular Diagnostics. On June 3, it announced its intention to acquire full ownership of LEX Diagnostics for consideration at closing of approximately $100 million. The acquisition is dependent upon the US Food and Drug Administration (FDA) clearance, which is expected in late 2025 or early 2026.
QuidelOrtho Corporation (NASDAQ:QDEL) originally invested in LEX Diagnostics in December 2023, with an initial investment of $20 million and an additional milestone-related investment of $10 million in 2024.
The acquisition can accelerate the company’s entry and bolster its participation in the approximately $9 billion molecular diagnostics market. Since it is one of the fastest-growing segments, management expects it to position QuidelOrtho Corporation (NASDAQ:QDEL) to capitalize on the growing demand for rapid, point-of-care molecular testing.
QuidelOrtho Corporation (NASDAQ:QDEL) is an in vitro diagnostics company that develops and manufactures diagnostics products.
2. LivaNova PLC (NASDAQ:LIVN)
Forward P/E: 12.16
Number of Hedge Fund Holders: 40
LivaNova PLC (NASDAQ:LIVN) is one of the best undervalued medical device stocks to buy now. On June 6, Jefferies analyst Matthew Taylor maintained a Buy rating on LivaNova PLC (NASDAQ:LIVN) and set a price target of $79.00. The analyst based the rating on the company’s strong growth potential, stating that it is undergoing a solid product cycle, especially with the Essenz upgrade.
Taylor anticipates the upgrade to bring a considerable revenue boost through a rise in average selling prices as the replacement cycle progresses. Another factor highlighting the company’s competitive edge is its expansion in the oxygenator market, with expanding production capacity and a growing market share.
The analyst also reasoned that LivaNova PLC (NASDAQ:LIVN) has a strategic focus on internal execution for the commercialization of its Obstructive Sleep Apnea (OSA) solutions and reported promising data from its Depression Treatment Device (DTD) pipeline, factors that further support the optimistic rating.
LivaNova PLC (NASDAQ:LIVN) is a global medical technology company that develops and delivers therapeutic solutions to benefit healthcare systems, patients, and healthcare professionals. The company’s operations are divided into Cardiopulmonary, Neuromodulation, and Advanced Circulatory Support segments.
1. Zimmer Biomet Holdings, Inc. (NYSE:ZBH)
Forward P/E: 11.74
Number of Hedge Fund Holders: 52
Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is one of the best undervalued medical device stocks to buy now. On July 10, Needham analyst Michael Matson maintained a neutral stance on Zimmer Biomet Holdings, Inc. (NYSE:ZBH), giving the stock a Hold rating. The analyst based the rating on the company’s recent strategic decision to acquire Monogram Technologies.
The acquisition is valued at around $168 million and aims at boosting the company’s robotics and enabling technologies offerings.
Although the analyst acknowledged that the acquisition is anticipated to be neutral to earnings per share between 2025 and 2027, he expressed some reservations associated with potential interest from surgeons in a fully automated robotic system.
He also stated that the acquisition may potentially bolster Zimmer Biomet Holdings, Inc.’s (NYSE:ZBH) standing in the robotics space, especially with the integration of Monogram’s AI-navigated knee arthroplasty solutions.
Despite this, Matson maintained a cautiously neutral outlook due to his concerns regarding the adoption of fully autonomous systems by surgeons.
Zimmer Biomet Holdings, Inc. (NYSE:ZBH) designs, manufactures, and markets orthopedic reconstructive products. It also offers biologics, extremities, sports medicine, dental implants, trauma products, and related surgical products.
While we acknowledge the potential of ZBH to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZBH and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
