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.
11. Glaukos Corporation (NYSE:GKOS)
Number of Hedge Fund Holders: 26
Glaukos Corporation (NYSE:GKOS) ranks among the best medical device stocks to invest in. As Glaukos Corporation (NYSE:GKOS) nears the October 20 PDUFA date for its Epioxa medication, Stifel reaffirmed its Buy rating and $115 price target for the company on October 8. According to the firm’s survey of 27 corneal cross-linking (CXL) ophthalmologists, Epioxa’s uptake and volume projections seem to be robust.
The survey’s findings confirm Stifel’s prediction that the medication will swiftly take up the majority of CXL operation volume and boost market expansion. A potential obstacle that Glaukos Corporation (NYSE:GKOS) management had previously identified is mitigated by Stifel’s survey, which also shows minimal CXL patient warehousing before Epioxa’s debut. This finding reinforced the firm’s upward bias on Corneal Health revenue in the second half of 2025 and 2026.
Glaukos Corporation (NYSE:GKOS) is a medical technology company that focuses on developing novel treatments for eye diseases such as glaucoma, corneal problems, and retinal diseases. The company creates micro-invasive surgical instruments and drug delivery systems to enhance patient outcomes.
10. Inspire Medical Systems, Inc. (NYSE:INSP)
Number of Hedge Fund Holders: 34
Inspire Medical Systems, Inc. (NYSE:INSP) ranks among the best medical device stocks to invest in. On October 10, Inspire Medical Systems, Inc. (NYSE:INSP) published clinical data demonstrating the effectiveness of its Inspire V system in treating patients with obstructive sleep apnea. The data includes a restricted U.S. market release at ten medical centers and the findings of a clinical investigation conducted in Singapore.
Comparing the Singapore experiment to the prior Inspire IV system showed a 20% decrease in surgical times for 44 patients. The company reports that all procedures were successfully completed. The study also demonstrated that the Inspire V system outperformed its predecessor in respiratory sensing, with an inspiratory phase overlap percentage of 87.1% against 79.4%.
Inspire Medical Systems, Inc. (NYSE:INSP) is a medical technology company that develops and commercializes innovative, minimally invasive solutions for obstructive sleep apnea (OSA).
9. iRhythm Technologies, Inc. (NASDAQ:IRTC)
Number of Hedge Fund Holders: 36
iRhythm Technologies, Inc. (NASDAQ:IRTC) ranks among the best medical device stocks to invest in. On October 13, Freedom Capital Markets began coverage of iRhythm Technologies, Inc. (NASDAQ:IRTC) with a Buy rating and a $205 price target.
With a 70% market share in long-term cardiac monitoring, Freedom Capital states that iRhythm’s Zio Monitor has established itself as a “category killer” and has disrupted the conventional 48-hour Holter monitors.
According to Freedom Capital, iRhythm Technologies, Inc. (NASDAQ:IRTC) has a 12% market share in continuous monitoring with its Zio AT product, which patients can wear for up to 14 days. The firm anticipates a rise in share with the impending release of a 21-day device.
The firm emphasized that while iRhythm Technologies, Inc. (NASDAQ:IRTC) has grown its sales channels to the primary care market and landed larger accounts, it has surpassed expectations and increased projections in the last two quarters.
iRhythm Technologies, Inc. (NASDAQ:IRTC) is a digital healthcare company. It specializes in the design and commercialization of device-based technologies for ambulatory cardiac monitoring.
8. Zimmer Biomet Holdings Inc. (NYSE:ZBH)
Number of Hedge Fund Holders: 40
Zimmer Biomet Holdings Inc. (NYSE:ZBH) ranks among the best medical device stocks to invest in. Zimmer Biomet Holdings Inc. (NYSE:ZBH) announced on October 7 that it successfully acquired Monogram Technologies Inc., an AI-driven orthopedic robotics firm, for an upfront payment of about $177 million. This expands Zimmer Biomet’s orthopedic solution range by integrating Monogram’s semi-autonomous and fully autonomous robotic technology.
Zimmer Biomet’s technology portfolio already includes its ROSA Robotics platform with almost 2,000 installations globally. According to the company, it is still dedicated to developing the platform, even after the Monogram acquisition. A number of new products, including the ROSA Knee with OptimiZe, which is pending FDA approval, are expected between this year and 2027.
Zimmer Biomet Holdings Inc. (NYSE:ZBH) is a global medical technology company that designs, develops, manufactures, and markets orthopaedic products, including implants, digital and robotic solutions.
7. Bruker Corporation (NASDAQ:BRKR)
Number of Hedge Fund Holders: 42
Bruker Corporation (NASDAQ:BRKR) ranks among the best medical device stocks to invest in. Bruker Corporation (NASDAQ:BRKR) reported on October 3 that it had received new orders for advanced Nuclear Magnetic Resonance (NMR) instruments from three major US research organizations. The orders, valued at nearly $10 million, were from the New York Structural Biology Center (NYSBC), the University of Delaware, and Northwestern University.
NYSBC has placed an order for the first Multifield NMR Relaxometry System in North America. In contrast, NSF funding has been used to acquire a 600 MHz Dynamic Nuclear Polarization NMR spectrometer for the Department of Chemistry and Biochemistry at the University of Delaware.
Meanwhile, Northwestern University’s Integrated Molecular Structure Education and Research Center has placed an order for an 800 MHz NMR spectrometer, which will assist more than 15 NIH-funded research groups and the broader Chicago research community.
Bruker Corporation (NASDAQ:BRKR), a leading American manufacturer of high-performance scientific equipment, focuses on tools for molecular and materials research, as well as industrial analysis.
6. Penumbra, Inc. (NYSE:PEN)
Number of Hedge Fund Holders: 47
Penumbra, Inc. (NYSE:PEN) ranks among the best medical device stocks to invest in. Needham raised Penumbra, Inc. (NYSE:PEN) from Hold to Buy on October 8 and set a $326 price target on the company’s shares, citing anticipated faster revenue growth in 2026. The firm identified four major factors that will contribute to the expected growth: the Ruby XL launch, the STORM-PE trial findings, the impending Thunderbolt product launch, and an ease of headwinds in China.
Particularly, Needham emphasized that Thunderbolt is expected to nearly double Penumbra’s revenue per stroke procedure, which should lead to further growth in neuro thrombectomy and additional improvement in gross margins.
Penumbra’s shares should rise, according to Needham, as a result of both multiple expansions brought on by the company’s fast revenue growth and improving 2026 revenue and EPS projections.
Penumbra, Inc. (NYSE:PEN) based in California, is a global leader in thrombectomy and vascular intervention technologies, offering products such as the Indigo and Lightning series, as well as neuro and vascular embolization solutions.
5. Insulet Corporation (NASDAQ:PODD)
Number of Hedge Fund Holders: 53
Insulet Corporation (NASDAQ:PODD) ranks among the best medical device stocks to invest in. Canaccord Genuity maintained its Buy rating on Insulet Corporation (NASDAQ:PODD) and boosted its price target from $353 to $399 on September 29. In order to incorporate the latest investor conferences and revised revenue guidance into its model, the firm marginally raised its 2025 forward revenue expectations from $2.627 billion to $2.639 billion.
In addition to adding 100 basis points to the operating margin in 2025 and 2026, Canaccord has increased its 2026 revenue projection for Insulet Corporation (NASDAQ:PODD) from $3.033 billion to $3.046 billion.
Despite the revenue gains, Canaccord modified its net interest expense assumptions and dropped its earnings per share expectation to $5.74 from $6.09 and its 2026 operating income estimate to $549.3 million from $561.0 million.
Insulet Corporation (NASDAQ:PODD) is a global leader in tubeless insulin pump technology, offering innovative diabetes management solutions through its Omnipod Insulin Management System.
4. Medtronic plc (NYSE:MDT)
Number of Hedge Fund Holders: 62
Medtronic plc (NYSE:MDT) ranks among the best medical device stocks to invest in. Following a tour of the company’s HUGO soft tissue surgical robotic facility in Boston, Stifel maintained its Hold rating on Medtronic plc (NYSE:MDT) and increased its price target from $90 to $105 on October 9. Stifel analysts met a number of Medtronic leaders, including Mike Marinaro, Executive Vice President and President of Medical Surgical Portfolio and Americas, during the facility tour.
The firm stated that Medtronic plc (NYSE:MDT) seems “confidently ready” from the standpoints of manufacturing, supply chain, and physician support to launch its HUGO robotic system in the US once the FDA’s expected approval of it by the end of fiscal 2026.
Medtronic plc (NYSE:MDT) intends to introduce HUGO with “a deliberate and thoughtful approach” after receiving the initial FDA approval in the US, Stifel noted.
A prominent name in medical technology, Medtronic plc (NYSE:MDT) focuses on the creation, production, and marketing of device-based therapeutics. With notable breakthroughs in spine and minimally invasive treatments, the company ranks as a leader in robotic-assisted surgery technology.
3. Edwards Lifesciences Corporation (NYSE:EW)
Number of Hedge Fund Holders: 65
Edwards Lifesciences Corporation (NYSE:EW) ranks among the best medical device stocks to invest in. Piper Sandler maintained its Overweight rating and $90 price target for Edwards Lifesciences Corporation (NYSE:EW) on October 7, ahead of the expected 7-year findings from Edwards’ PARTNER 3 study, which is set to be presented on October 27 at the Transcatheter Cardiovascular Therapeutics (TCT) conference.
With follow-up spanning ten years, Edwards’ historic PARTNER 3 trial compares surgical aortic valve replacement (SAVR) with its Sapien 3 transcatheter aortic valve replacement (TAVR) in low-risk patients.
According to Piper Sandler, upcoming data will likely show that TAVR is not inferior to SAVR on these endpoints, which could render the findings a “non-event with minimal commercial implications.”
Edwards Lifesciences Corporation (NYSE:EW) develops and sells patient-focused medical innovations, including transcatheter heart valves and hemodynamic monitoring systems for the treatment of structural heart disease and critical care.
2. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 69
Abbott Laboratories (NYSE:ABT) ranks among the best medical device stocks to invest in. Benchmark began coverage of Abbott Laboratories (NYSE:ABT) on October 10 with a $145 price target and a Buy rating, describing the company as a reliable performer in a dynamic global environment. The firm claims that Abbott’s business strategy is unique in that it is not reliant on any one treatment, product, or market.
Benchmark anticipates that Abbott’s Diagnostics business will pick up speed again in 2026 with the introduction of a new molecular nucleic acid testing platform for blood screening, even if the company is still recuperating from post-pandemic drops in COVID-19 testing and value-based procurement pressures in China.
Additionally, Benchmark emphasized Abbott’s resilience to potential trade disruptions by pointing to its $500 million investment in new U.S. facilities and expansions for the upcoming year. According to analysts, this move puts the company in a strong position for any upcoming tariff talks.
Abbott Laboratories (NYSE:ABT) is a leading global healthcare company that manufactures a wide range of branded generic medications, medical devices, diagnostics, and nutritional items.
1. Boston Scientific Corporation (NYSE:BSX)
Number of Hedge Fund Holders: 100
Boston Scientific Corporation (NYSE:BSX) ranks among the best medical device stocks to invest in. Following an analyst visit to Boston Scientific Corporation (NYSE:BSX)’s headquarters, TD Cowen reaffirmed its Buy rating and $115 price target on the company on October 10. According to the firm, the visit strengthened its belief in Boston Scientific’s outlook, which it had formed during the company’s most recent investor day.
Significant ground was covered in pulsed field ablation (PFA) technology during the visit, according to TD Cowen, and the firm received feedback indicating Boston Scientific Corporation (NYSE:BSX) has a “very compelling” outlook despite recent competition in the market.
The firm also cited CEO Mike Mahoney’s “thoughtful replies” to a number of growth-related questions, which underlined his emphasis on category leadership as a tactic for contracting success.
Boston Scientific Corporation (NYSE:BSX) is a global leader in the manufacture of medical devices, including stents, brain stimulation systems, heart monitors, and catheters.
While we acknowledge the potential of BSX 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 BSX and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.
Disclosure: None. This article is originally published at Insider Monkey.
