In this article, we will look at the 11 Best Medical Device Stocks to Buy Now.
Trump’s Tariffs Are Dividing the Medical Community
On April 16, CNBC reported that Trump’s tariffs are building a divide in the medical community. The first Trump administration did not impose tariffs on medical devices and protective gear manufactured in Mexico, China, and Canada. However, the sector has not received a reprieve from the president’s newest round of duties so far. This has resulted in a division: since device makers could potentially face significant challenges from tariffs, they are pushing back for a way out. In contrast, personal protective equipment manufacturers stand to benefit from the barriers created by the levies, which is why they are not showing signs of a push back.
The medical community is thus presenting a dichotomy in the face of tariffs. CNBC reported that the duties could also raise costs for hospitals, and in turn, patients, ultimately reducing access to critical care and equipment. Scott Whitaker, CEO of AdvaMed, the trade group representing medical technology and device makers, said the following about the situation:
“MedTech supply chain leaders are already reporting supply chain concerns, and we cannot afford to drive up the cost of health care for patients, or on the health care system. The reality is, any increased costs will be largely borne by taxpayer-funded health programs like Medicare, Medicaid, and the VA.”
Hospital trade groups are also voicing their concerns, warning that tariffs could bring the quality of care down. CNBC reported that Rick Pollack, the CEO of the American Hospital Association, opined:
“The AHA has and will continue to share with the Administration, disruptions in the availability of these critical devices — many of which are sourced internationally — have the potential to disrupt patient care. AHA continues to push for a tariff exemption for medical devices to ensure that hospitals and health systems can continue to serve their patients and communities.”
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Pricing Complexity in the Medical Device Sector
President Trump imposed a 25% tariff on imported goods from Mexico and Canada in February, later delaying levies on a number of items falling under the US-Mexico-Canada Agreement. However, Chinese goods have not seen any reprieve. In fact, the new levies imposed in Trump’s second term have brought the total tariff rate up to 145%. While a way out of the present conditions is to raise prices to offset the rising expenses from tariffs, a range of hospitals and other organizations buying medical equipment cannot do so. These institutions are thus likely to face complications passing on higher costs under the current insurance coverage contracts with locked-in yearly prices.
Casey Hite, CEO of Aeroflow Health, a firm that provides insurance-covered medical devices, said the following:
“With the level of tariffs that we’re looking at in China, businesses are going to be completely upside down on these products … they can’t pass those costs on to the consumer. I think what we would like to see, more than anything, is a runway or some predictability. Let’s do this over the next 12 months, next two years, so that US organizations can prepare.”
With these trends in view, let’s look at the 11 best medical device stocks to buy now.
A specialist operating a modern medical device in a clinical setting.
Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a list of 25 best medical device stocks and then chose the top 11 with the highest number of hedge fund holders as of Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is ordered in ascending order of hedge fund sentiment.
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 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
11 Best Medical Device Stocks to Buy Now
11. Zimmer Biomet Holdings, Inc. (NYSE:ZBH)
Number of Hedge Fund Holders: 53
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.
The company leads the orthopedic sector with a 36% share in knee implants and a 23% share in hip implants. Zimmer Biomet Holdings, Inc. (NYSE:ZBH) also holds a competitive market advantage due to its regulatory expertise, as the development of medical implants requires a lengthy FDA approval process, creating a natural barrier to entry and limiting competition.
On April 25, BTIG analyst Ryan Zimmerman maintained a Buy rating on Zimmer Biomet Holdings, Inc. (NYSE:ZBH) and set a price target of $123.00. The analyst said that the company’s recent strategic product introductions in the hip replacement sector position it well to regain market share.
The company has launched innovative products such as the Z1 Triple Taper Stem, HAMMR, and OrthoGrid, which have received generally optimistic feedback from orthopedic surgeons. The products can improve Zimmer Biomet Holdings, Inc.’s (NYSE:ZBH) competitive position, supporting the Buy rating.
10. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 66
Abbott Laboratories (NYSE:ABT) discovers, develops, manufactures, and sells healthcare products. Its Medical Devices segment manages the global sale of products related to heart failure, electrophysiology, rhythm management, structural heart, vascular, neuromodulation, and diabetes care.
On May 5, Analyst Larry Biegelsen of Wells Fargo maintained a Buy rating on Abbott Laboratories (NYSE:ABT), retaining the price target of $147.00. The analyst said the company’s recent legal victory, the favorable summary judgment in the first MDL NEC case, reflects a positive outlook for similar pending cases. The decision reinforced Abbott Laboratories’ (NYSE:ABT) position, stating that their formula was not defective and that any other safer alternative was not feasible.
The analyst reasoned that the difficulty for plaintiffs to come up with a more favorable record translates to a strong defense for the company in future litigations. Abbott Laboratories (NYSE:ABT) further boasts a strengthening market position due to a lack of adequate donor breast milk in hospitals, which supports the continued use of formula. These market and legal factors bolster an optimistic investment outlook for the company, ranking it tenth on our list of the best medical device stocks to buy now.
9. Medtronic plc (NYSE:MDT)
Number of Hedge Fund Holders: 67
Medtronic plc (NYSE:MDT) is a medical technology company that manufactures, distributes, and sells device-based medical services and therapies. It operates under four primary segments: Cardiovascular Portfolio, Neuroscience Portfolio, Medical Surgical Portfolio, and Diabetes Operating Unit.
On April 25, the company attained FDA approval for the OmniaSecure defibrillation lead for placement within the right ventricle. Built on Medtronic plc’s (NYSE:MDT) portfolio of lead solutions specialized for precise delivery and placement, it is the world’s smallest defibrillation lead and marks a meaningful innovation in electrophysiology.
The company also has positive investor sentiment due to its recent announcement of the Expand URO Investigational Device Exemption clinical study results on April 27. It was the largest robotic-assisted urologic surgery study ever conducted, and it met both primary safety and effectiveness endpoints.
On April 28, Wells Fargo analyst Larry Biegelsen maintained a Buy rating on Medtronic plc (NYSE:MDT) and set a price target of $98.00.
8. Edwards Lifesciences Corporation (NYSE:EW)
Number of Hedge Fund Holders: 67
Edwards Lifesciences Corporation (NYSE:EW) develops medical innovations for heart disease and critical care monitoring. Its products are categorized into four primary areas: Transcatheter Aortic Valve Replacement, Transcatheter Mitral and Tricuspid Therapies, Surgical Structural Heart, and Critical Care.
The company is considered a leader in MedTech due to its health value solutions and strong market position, ranking it eighth on our list of top medical device stocks to invest in now. In a report released on April 25, Matt Miksic from Barclays reiterated a Buy rating on Edwards Lifesciences Corporation (NYSE:EW), with a price target of $90.00.
Edwards Lifesciences Corporation (NYSE:EW) also has positive operations, which is why analysts are bullish on the stock. It reported an 8% growth in total sales in fiscal Q1 2025, reaching $1.041 billion. The growth reflects the strength of the company’s differentiated and broad portfolio, which is continually driving financial success.
7. DexCom, Inc. (NASDAQ:DXCM)
Number of Hedge Fund Holders: 69
DexCom, Inc. (NASDAQ:DXCM) is a medical device company that manufactures continuous glucose monitoring (CGM) systems to allow real-time health management control. Specializing in diabetes care technology, the company is the seventh best medical device stock to buy now. It offers various medical devices and products, including Dexcom G6, Dexcom G7, Dexcom Stelo, Dexcom Share, Dexcom Real-Time API, and Dexcom ONE.
On May 5, Analyst Mike Kratky from Leerink Partners reiterated a Buy rating on DexCom, Inc. (NASDAQ:DXCM). He increased the price target to $101.00 from $95.00, based on the company’s impressive fiscal Q1 2025 sales that surpassed consensus estimates. The growth was driven by a notable increase in new customer starts in the US market.
While the company is facing some challenges like increased inventory replenishment costs affecting gross margins, management is optimistic about overcoming these expenses through operational efficiencies. The analyst views DexCom, Inc.’s (NASDAQ:DXCM) unchanged full-year sales guidance as conservative, given the various growth drivers. These include recovery in the durable medical equipment share, increased coverage for Type 2 patients, and the expected uptake of the G7 sensor.
6. Stryker Corporation (NYSE:SYK)
Number of Hedge Fund Holders: 70
Stryker Corporation (NYSE:SYK) is a medical technology company that offers products and services in Neurotechnology, Medical and Surgical, and Orthopedics and Spine.
The company’s medical devices and products include surgical navigation systems, surgical equipment, emergency medical equipment, endoscopic and communications systems, neurosurgical and neurovascular devices, Mako Robotic-Arm Assisted technology, and other products. Stryker Corporation (NYSE:SYK) holds around 13,000 global patents to shield its products from replication.
On May 5, Wall Street analyst Lee Hambright from Bernstein revisited Stryker Corporation (NYSE:SYK). The analyst maintained a Buy rating on the stock with a $450.00 price target, based on the company’s solid performance and future growth potential.
Stryker Corporation’s (NYSE:SYK) revenue increased 10.1% organically in fiscal Q1 2025, exceeding expectations by 3%. The growth was consistent across various segments and regions, pointing to a robust business model. The company has also effectively managed a $200 million tariff impact and adjusted its guidance to cover the Inari acquisition. Its Inari integration is on track, and future product launches are anticipated to drive further growth.
According to the analyst, Stryker Corporation (NYSE:SYK) is set to experience continued above-market growth, supported by factors such as favorable demographics, the adoption of robotic-assisted surgery, and strong procedure volumes.
5. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 95
Intuitive Surgical, Inc. (NASDAQ:ISRG) has an elaborate ecosystem of services and products that provides robotic-assisted surgical solutions and invasive care. It ranks fifth on our list of the top medical device stocks to invest in now. Its products include the Ion Endoluminal and the Da Vinci Surgical systems.
On May 1, the company announced the FDA clearance of the da Vinci Single Port surgical system for transanal local excision/resection. The clearance expands the da Vinci SP’s capabilities in colorectal surgery, bringing a positive light to its operations.
On the same day, Intuitive Surgical, Inc. (NASDAQ:ISRG) also announced an increase in its stock repurchase program to $4.0 billion, which reflects a strategic initiative to manage its capital structure and boost shareholder value.
Analysts are bullish on the stock due to its strong operations, as the company reported a 17% growth in its Da Vinci procedures in fiscal Q1 2025. Intuitive Surgical, Inc. (NASDAQ:ISRG) also attained a record 367 Da Vinci systems installations in the quarter. This growth reflects the Da Vinci system’s rising adoption and successful expansion in various geographies and surgical fields. Intuitive Surgical, Inc.’s (NASDAQ:ISRG) revenue for fiscal Q1 2025 also increased 19% over last year, reaching $2.25 billion.
4. Boston Scientific Corporation (NYSE:BSX)
Number of Hedge Fund Holders: 96
Boston Scientific Corporation (NYSE:BSX) manufactures, develops, and markets medical devices used in interventional medical procedures. Its operations are divided into Cardiovascular and MedSurg segments. The Cardiovascular segment covers Cardiology and Peripheral Interventions, while the MedSurg segment comprises Urology, Endoscopy, and Neuromodulation. The company ranks fourth on our list of the top medical device stocks to invest in.
On April 25, Barclays analyst Matt Miksic raised the firm’s price target on Boston Scientific Corporation (NYSE:BSX) to $125 from $118, keeping an Overweight rating on the shares. The firm reasoned that solid results from ADVANTAGE-AF for using Farawave and Farapoint in persistent atrial fibrillation should allow FDA approval later this year.
BTIG analyst Marie Thibault also maintained their bullish stance on the stock on April 23, giving it a buy rating based on its solid financial performance and promising outlook. Boston Scientific Corporation (NYSE:BSX) reported notable fiscal Q1 2025 revenue and EPS, surpassing both market expectations and its own guidance. The analyst attributed this success to higher-than-expected sales in electrophysiology and interventional cardiology. This holds especially true for the Farapulse franchise, which has positioned the company as a leader in the electrophysiology market.
Boston Scientific Corporation (NYSE:BSX) has raised its 2025 revenue guidance, and the upcoming CFO transition is expected to maintain stability in leadership, reflecting confidence in its stable growth and sustained profitability.
3. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 98
Johnson & Johnson (NYSE:JNJ) develops, manufactures, and sells products in the healthcare field. The company operates through two segments: Innovative Medicine and MedTech. The MedTech segment includes an elaborate range of medical devices and products used in cardiovascular intervention, orthopedics, interventional solutions, surgery, and vision fields.
On May 1, Leerink Partners analyst David Risinger maintained their bullish stance on the stock, giving it a Buy rating due to the promising developments in its TAR-200 platform for bladder cancer treatment. The SunRISE-1 Cohort 4 study reported strong data, which highlights the significant potential of TAR-200 to be taken up as a preferred treatment option. It could even replace more invasive procedures like radical cystectomy, and it also has a favorable safety profile.
Since many bladder cancer patients fall in the non-muscle invasive category, the significant market opportunity further supports Johnson & Johnson’s (NYSE:JNJ) positive outlook. Management estimates peak sales for the TARIS platform to surpass $5 billion, suggesting strong revenue potential.
Johnson & Johnson (NYSE:JNJ) also plans to seek strategic approval in 2026, which further justifies the stock’s buy rating.
2. Thermo Fisher Scientific Inc. (NYSE:TMO)
Number of Hedge Fund Holders: 100
Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the best medical device stocks to buy now. It provides analytical instruments, reagents, equipment, and other services for analysis, research, diagnostics, and discovery. It operates through the Analytical Instruments, Life Sciences Solutions, Laboratory Products and Services, and Specialty Diagnostics segments.
In a report released on April 25, Jill Wu from CMB International Securities maintained a Buy rating on Thermo Fisher Scientific Inc. (NYSE:TMO) and set a price target of $526.00. The analyst supported this rating with the company’s ability to effectively manage macroeconomic challenges despite experiencing headwinds such as US domestic policy changes and tariffs.
Thermo Fisher Scientific Inc. (NYSE:TMO) also surpassed adjusted EPS and revenue expectations in fiscal Q1 2025, which suggests strong and stable demand in most of its business segments, especially the biotech and pharma markets.
The company plans to invest $2 billion in the coming four years to expand its R&D facilities and US manufacturing, highlighting its commitment to long-term growth.
1. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders: 101
Danaher Corporation (NYSE:DHR) designs, manufactures, and markets professional, medical, industrial, and commercial products and services. It operates through Diagnostics, Biotechnology, Life Sciences, and Environmental and Applied Solutions. The Life Diagnostics segment offers clinical instruments, devices, consumables, and other services for diagnosing and treating diseases.
In a report released on April 23, Michael Ryskin from Bank of America Securities reiterated a Buy rating on Danaher Corporation (NYSE:DHR) and set a price target of $230.00. The company’s fiscal Q1 2025 results surpassed expectations, especially in the Bioprocessing and CPHD respiratory segments.
It also maintained its fiscal year 2025 sales guidance and raised its bioprocessing growth forecast. These trends reflect its resilience in challenging market environments and confidence in market demand and operational capabilities.
According to the analyst, Danaher Corporation (NYSE:DHR) can also deal with potential headwinds such as tariffs through strategic initiatives like supply chain management and surcharges, further supporting the buy rating.
Overall, DHR ranks first among the best medical device stocks to buy now. While we acknowledge the potential of medical device stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DHR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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