In this article, we discuss 5 best medical technology stocks to buy. If you want to read about some more medical technology stocks, go directly to 12 Best Medical Technology Stocks to Buy.
5. DexCom, Inc. (NASDAQ:DXCM)
Number of Hedge Fund Holders: 56
DexCom, Inc. (NASDAQ:DXCM), a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems. It is one of the top medical technology stocks to invest in. On July 28, the firm posted earnings for the second quarter of 2022, reporting earnings per share of $0.17 and a revenue of $696 million, up more than 17% compared to the revenue over the same period last year. The company is based in California and was founded in 1999. It has a market capitalization of close to $31 billion.
On July 15, Bernstein analyst Lee Hambright initiated coverage of DexCom, Inc. (NASDAQ:DXCM) stock with an Outperform rating and a $105 price target, highlighting the company’s innovation in medical technology via glucose monitoring.
At the end of the second quarter of 2022, 56 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in DexCom, Inc. (NASDAQ:DXCM), compared to 58 in the previous quarter worth $1.5 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and DexCom, Inc. (NASDAQ:DXCM) was one of them. Here is what the fund said:
“DexCom, Inc. (NASDAQ:DXCM) is the leading provider of continuous glucose monitoring systems for patients with diabetes. The stock fell along with other premium valuation growth stocks, primarily on multiple contraction. Concern about price competition from Abbott Labs’ Libre product also played a role. Results for the first quarter were solid. Sales increased 22% organically, margins expanded 350 basis points, and the company maintained guidance for continued strong results.
An important new and revolutionary product, the G7, was approved and launched in Europe, and the company expects it to be approved in the U.S. soon. The product is 60% smaller, fully disposable, and designed for extended wear. We remain excited that CGM will become the standard of care for Type 1 diabetics and will be used extensively for Type 2 diabetics as well, which we think will be a major driver of continued sales and profit growth well into the future.”
4. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 56
Intuitive Surgical, Inc. (NASDAQ:ISRG) develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality and access to minimally invasive care. The firm is among the best medical technology stocks to invest in. On September 22, the company announced that it had entered into an agreement with fiber optics company Luna Innovations for the supply of photonic subsystems in a contract worth $14.2 million.
On September 9, Stifel analyst Rick Wise maintained a Buy rating on Intuitive Surgical, Inc. (NASDAQ:ISRG) stock and raised the price target to $260 from $250, highlighting the company’s raised 2023 sales and EPS estimates.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Intuitive Surgical, Inc. (NASDAQ:ISRG), with 4.6 million shares worth more than $923 million.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Intuitive Surgical, Inc. (NASDAQ:ISRG) was one of them. Here is what the fund said:
“Intuitive Surgical, Inc. (NASDAQ:ISRG) markets the da Vinci Surgical System, a robotic system used for minimally invasive surgical procedures. The stock declined along with other premium valuation, high-growth names due to investor concerns around inflation and rising interest rates. The potential for a more challenging sales environment for Intuitive’s hospital customer base also played a role. We continue to believe Intuitive has a long runway to expand the number of procedures performed using its robotic system.”
3. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 61
Abbott Laboratories (NYSE:ABT) discovers, develops, manufactures, and sells health care products worldwide. The firm is among the best medical technology stocks to invest in. The company has an impressive dividend profile. It has consistently paid a dividend to shareholders for the past thirty-two years. On September 15, the firm declared a quarterly dividend of $0.47 per share, in line with previous. The forward yield was a solid 1.78%. The dividend is payable to shareholders by late September and early October.
On July 21, RBC Capital analyst Shagun Singh maintained an Outperform rating on Abbott Laboratories (NYSE:ABT) stock and lowered the price target to $132 from $143, appreciating the solid second quarter earnings results of the firm.
At the end of the second quarter of 2022, 61 hedge funds in the database of Insider Monkey held stakes worth $3.6 billion in Abbott Laboratories (NYSE:ABT), compared to 68 in the previous quarter worth $4.1 billion.
In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Abbott Laboratories (NYSE:ABT) was one of them. Here is what the fund said:
“Abbott Laboratories (NYSE:ABT) announced a recall of its infant formula brand Similac® in the US. Though the recall will impact near-term revenues, we are not concerned about any long-term impacts. We remain optimistic about the company’s prospects over the long run because, in our view, it is one of the highest quality names in health care with a talented management team that makes smart capital allocation decisions. Abbott also has leading health care and consumer franchises with a particularly strong competitive position in the medical device business. Abbott continues to launch innovative products in key strategic areas (such as diabetes, structural heart and diagnostics), which should help drive not only revenue growth but margin expansion.”
2. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders: 82
Danaher Corporation (NYSE:DHR) designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The company is one of the most prominent medical technology stocks to invest in. The company has an impressive dividend profile. It has consistently paid a dividend to shareholders for the past twenty-eight years. These payouts have also registered growth in the past eight years. On September 13, the firm declared a quarterly dividend of $0.25 per share, in line with previous.
On August 24, Credit Suisse analyst Dan Leonard initiated coverage of Danaher Corporation (NASDAQ:DHR) stock with an Outperform rating and a $340 price target, noting the strong emergence of the firm following the pandemic due to capital flow and growth.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Danaher Corporation (NYSE:DHR), with 3.8 million shares worth more than $973 million.
In its Q2 2022 investor letter, Weitz Investment Management, an asset management firm, highlighted a few stocks and Danaher Corporation (NYSE:DHR) was one of them. Here is what the fund said:
“Consistent with that approach, portfolio activity among our long holdings tilted toward purchases. We added to almost half our holdings by varying degrees, and we were pleased to initiate new positions in Danaher (NYSE:DHR). Danaher is a provider of instruments and diagnostic tools to medical, life science, and other desirable end-markets worldwide. The business generate significant free cash flow, possess strong competitive positions, and have excellent management teams with demonstrated acquisition records.”
1. Thermo Fisher Scientific Inc. (NYSE:TMO)
Number of Hedge Fund Holders: 93
Thermo Fisher Scientific Inc. (NYSE:TMO) offers life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and services worldwide. The firm features on the list of best medical technology stocks to invest in. On September 21, Thermo Fisher Scientific Inc. (NYSE:TMO) announced that it would be opening a new $160 million facility in Chelmsford. The facility would make biologic materials needed for the effective production of vaccines and therapies for the treatment of cancer and other diseases.
On August 24, Credit Suisse analyst Dan Leonard initiated coverage of Thermo Fisher Scientific Inc. (NYSE:TMO) stock with a Neutral rating and a $675 price target, highlighting the company’s performance due to diversity of services and profit sharing.
At the end of the second quarter of 2022, 93 hedge funds in the database of Insider Monkey held stakes worth $7.8 billion in Thermo Fisher Scientific Inc. (NYSE:TMO), compared to 101 in the preceding quarter worth $7.97 billion.
In its Q2 2022 investor letter, Stewart Asset Management, an asset management firm, highlighted a few stocks and Thermo Fisher Scientific Inc. (NYSE:TMO) was one of them. Here is what the fund said:
“Recently we initiated two new investments. One in Thermo Fisher Scientific (NYSE:TMO), a supplier to the life sciences industry. We have followed the company for many years and the recent downturn in share price gave us a good entry price at which to invest. Thermo has had strong earnings growth for many years and is led by a superb team. The company’s recent acquisitions make it a full-service supplier to the biopharma and biotech industries.”
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