5 High Growth Healthcare Stocks to Buy

3. Inspire Medical Systems, Inc. (NYSE:INSP)

Number of Hedge Fund Holders: 37

Inspire Medical Systems, Inc. (NYSE:INSP) is a Minnesota-based company that is working in the sleep apnea domain. Over the past 12 months Inspire Medical Systems, Inc. (NYSE:INSP) has gained about 22%. Earlier this month Inspire Medical Systems, Inc. (NYSE:INSP) posted its fourth quarter results.  Revenue in the quarter jumped about 76% on a YoY basis to total $137.9 million, beating estimates by $0.15 million. GAAP EPS in the period came in at $0.10, beating estimates by $0.68. For full-year 2023 it expects its revenue to come in the range of $560 million to $570 million, versus the consensus estimate of $545.71 million.

In December, KeyBanc analyst Matthew Mishan started covering Inspire Medical Systems, Inc. (NYSE:INSP) with an Overweight rating and a $287 price target. The analyst believes Inspire Medical Systems, Inc. (NYSE:INSP) is operating in an underpenetrated market and has the potential to beat revenue growth estimates.

Baron Small Cap Fund made the following comment about Inspire Medical Systems, Inc. (NYSE:INSP) in its Q4 2022 investor letter:

“Inspire Medical Systems, Inc. (NYSE:INSP) sells an implantable device that treats sleep apnea. Revenues grew an astounding 77% in the quarter, way ahead of expectations, and the stock popped. We believe Inspire sells a unique product that has great advantages to CPAP devices, the dominant therapy, and is gaining significant market share. Management is executing on all frontsdriving awareness through effective advertising, increasing procedures at existing centers, and adding new centers. They are also continuing to innovate. This quarter a new Bluetooth remote control device was introduced. The next generation device will come out in mid-2023, and we expect approval of new indications, which will expand the available market. We expect revenues to continue to grow rapidly, with sales potential well over $2 billion, which is five-fold higher than current revenue. We believe the company will be profitable in 2023 and margins will be high over time.”