In this article, we will take a look at the 12 Best Medical Device Stocks to Invest In Now.
As chronic diseases like diabetes and cancer become more common, medical device technology is becoming increasingly innovative. With regard to that, the US Food and Drug Administration (FDA) authorized 30 new devices in 2024 alone.
In its report, BCC Research predicts that the global medical device market will grow at a compound annual growth rate (CAGR) of 9.8%, from $810.4 billion in 2024 to $1.3 trillion by 2029.
However, because of the uncertainty around tariffs, the industry has been unstable this year. For example, US medtech equities dropped in late September as a result of pressure on shares across the industry from the US Commerce Department’s investigation into medical device imports.
According to analysts, the inquiry could put pressure on companies whose supply chains are sourced globally and result in a slight stock overhang. Speaking on the probe, Needham analyst Mike Matson said the following:
“This creates a new overhang for the already-beleaguered sector, but the actual impact of any new tariffs depends on companies’ ability to pass through the costs to customers.”
Copyright: nimon / 123RF Stock Photo
Our Methodology
For our list of the best medical device stocks to invest in now, we started with a list of stocks pulled from ETFs, stock screeners, and web rankings. We then utilized Insider Monkey’s Q2 2025 database to discover the best stocks held by hedge funds. The list is organized in ascending order of hedge fund sentiment around each stock.
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).
12. Smith & Nephew plc (NYSE:SNN)
Number of Hedge Fund Holders: 14
Smith & Nephew plc (NYSE:SNN) ranks among the best medical device stocks to invest in. Moody’s Ratings upgraded Smith & Nephew plc (NYSE:SNN)’s Baa2 long-term issuer ratings from stable to positive on October 2. Despite possible concern from US tariffs, the update shows strong organic revenue and margin growth backed by the company’s ongoing transformation plan.
The company’s improved free cash flow generation, which has returned to pre-pandemic levels, has improved financial flexibility, according to Moody’s. The firm also noted Smith & Nephew’s cautious financial strategy, which aims for a company net leverage of about 2x.
Additionally, Moody’s expects Smith & Nephew plc (NYSE:SNN) to generate around $400 million in free cash flow following dividends in 2025 and $500 million in 2026.
Smith & Nephew plc (NYSE:SNN), a global medical technology company based in the UK, provides a broad selection of products and services in the medical equipment sector to meet the needs of its customers.
Hedge Fund Resource Center