In this article, we will discuss the 5 medical technology stocks to buy. If you want to read our detailed analysis of the medical technology industry, go directly to the 10 Medical Technology Stocks to Buy.
5. Becton, Dickinson and Company (NYSE: BDX)
Number of Hedge Fund Holders: 65
Becton, Dickinson and Company (NYSE: BDX) ranks 5th on the list of the 10 medical technology stocks to buy. The New Jersey-based healthcare company markets diagnostic products, laboratory equipment, and medical devices. The company offers a number of automated products and systems from automated blood culturing to supply management systems.
In May, Barclays initiated coverage on Becton, Dickinson and Company (NYSE: BDX) with an Equal-weight rating, and a price target of $270 per share. Becton, Dickinson and Company (NYSE: BDX) stated in mid-May that the construction of its $200 million manufacturing plant in Spain will begin in late 2021. This will be the company’s fourth expansion project in Spain, with 600 jobs expected to be established by 2030.
The company has a market cap of $72 billion. In the second quarter of 2021, Becton, Dickinson and Company (NYSE: BDX) had an EPS of $3.19, an increase of 25.1% year over year and beating estimates by $0.15. The company’s second-quarter revenue was $4.9 billion, up 15.4% year over year, driven by strong revenue growth in pharmaceutical systems and high demand for COVID-19 diagnostic kits.
By the end of the first quarter of 2021, 65 hedge funds followed by Insider Monkey held stakes in Becton, Dickinson and Company (NYSE: BDX) with a total value of $3.73 billion. Out of the hedge funds being tracked by Insider Monkey, Ontario-based investment firm
Galibier Capital Management is a leading shareholder in Becton, Dickinson and Company (NYSE: BDX) with 65,417 shares worth more than $15.9 million.
4. Medtronic plc (NYSE: MDT)
Number of Hedge Fund Holders: 65
Medtronic plc (NYSE: MDT) ranks 4th on the list of the 10 medical technology stocks to buy. The Dublin-based medical technology company has grown to be one of the biggest manufacturers of medical devices, cardiac pacemakers, and glucose monitoring systems. On top of that, Medtronic plc (NYSE: MDT) markets surgical robots and AI-powered medical machines used in various medical and surgical treatments.
On June 3rd, Argus Research analyst David Toung maintained a Buy rating on Medtronic plc (NYSE: MDT) and increased the price target to $150 per share from the previous $135. The analyst sees a positive outlook on the company’s decision to reinvest its operating cash flow to support new products and ramp up new product development, as well as its leading market position in its Minimally Invasive Therapies, Brain Therapies, and Pain Therapies units.
The company has a market cap of $169 billion. In the second quarter of 2021, Medtronic plc (NYSE: MDT) had an EPS of $1.5, beating estimates by $0.08. The company’s revenue for the fiscal year 2021 came in at $30.1 billion, up 4% year over year. The stock has returned 29% to investors over the past twelve months and 7.2% year to date. In May, Medtronic plc (NYSE: MDT) declared an increase in quarterly dividends to $0.63 per share or an annual amount of $2.52 per share.
By the end of the first quarter of 2021, 65 hedge funds followed by Insider Monkey held stakes in Medtronic plc (NYSE: MDT) with a total value of $3.63 billion, up from 59 hedge funds worth $2.81 billion the preceding quarter.
3. Thermo Fisher Scientific Inc. (NYSE: TMO)
Number of Hedge Fund Holders: 79
Thermo Fisher Scientific Inc. (NYSE: TMO) ranks 3rd on the list of the 10 medical technology stocks to buy. The Massachusetts-based life sciences company offers instruments used in medical and biological research. The company also offers special diagnostic kits and laboratory products and services.
On July 16th, Benchmark analyst Robert Wasserman initiated coverage of Thermo Fisher Scientific Inc. (NYSE: TMO) with a Buy rating and $580 price target. The analyst is optimistic that Thermo Fisher Scientific Inc. (NYSE: TMO) is well-positioned to provide the next phase of biotechnology advancement with its cell and gene therapy discovery.
The company has a market cap of $205 billion. In the first quarter of 2021, Thermo Fisher Scientific Inc. (NYSE: TMO) had an EPS of $7.21, beating estimates by $0.56. The company’s revenue in the first quarter came in at $9.91 billion, an increase of 59% year over year. Shares of Thermo Fisher Scientific Inc. (NYSE: TMO) jumped 2.31% in the last five days after opening its 67,000-square foot cGMP plasmid DNA production facility in Carlsbad, California. On July 8th, the company declared a quarterly dividend of $0.26 per share, the same as the previous quarter. The dividend yield is 0.2%. The stock has returned 27% to investors over the past twelve months and shares have increased 8% in the last three months.
By the end of the first quarter of 2021, 79 hedge funds followed by Insider Monkey held stakes in Thermo Fisher Scientific Inc. (NYSE: TMO) with a total value of $6.25 billion, up from 89 hedge funds worth $5.47 billion the preceding quarter.
In its Q4 2020 investor letter, Baron Health Care Fund highlighted a few stocks and Thermo Fisher Scientific Inc. (NYSE: TMO) is one of them. Here is what the fund said:
“We added to Thermo Fisher Scientific Inc., the leading global life sciences tools provider. Thermo is a “picks and shovels” company that offers a broad array of products and services (such as instruments, reagents, consumables, and manufacturing, and other services) to pharmaceutical and biotechnology companies, hospitals and clinical diagnostic labs, universities, research institutions, and government agencies, as well as environmental, industrial quality and process control settings. Thermo has benefited from sales of products and services related to COVID-19, such as diagnostic testing, personal protective equipment, and pharmaceutical services, which we think demonstrates the company’s broad capabilities and critical role in the life sciences industry. Although some of this revenue will taper off as the pandemic subsides, we think Thermo will continue to benefit from long-term secular tailwinds, including increased investments in life sciences, diagnostics, vaccine/therapeutics, and health care broadly. We think Thermo should be able to generate at least mid-to-high single-digit annual organic revenue growth well into the future driven by positive end-market trends and market share gains. We also expect Thermo to continue to use its strong free cash flow and balance sheet to create shareholder value through M&A and share repurchases.”
2. Johnson & Johnson (NYSE: JNJ)
Number of Hedge Fund Holders: 81
Johnson & Johnson (NYSE: JNJ) ranks 2nd on the list of 10 medical technology stocks to buy. The New Jersey-based healthcare company offers medical devices, pharmaceutical products, and healthy consumer products. Johnson & Johnson (NYSE: JNJ) produced a single-shot COVID-19 vaccine that has strong action against the Delta variant and is extremely prevalent in all existing COVID-19 variants.
After the vaccine manufacturer obtained positive data for its single-shot COVID-19 vaccine, Cantor Fitzgerald analyst Louise Chen maintained an Overweight rating on Johnson & Johnson (NYSE: JNJ) with a price target of $200 per share on July 2nd.
The company has a market cap of $444 billion. In the second quarter of 2021, Johnson & Johnson (NYSE: JNJ) had an EPS of $2.35, an increase of 72.8% year over year, and beating estimates by $0.24. The company’s second-quarter revenue came in at $23.3 billion, an increase of 27.1% from $18.3 billion in the same period in 2020, and beating revenue estimates by $660 million. On July 19th, Johnson & Johnson (NYSE: JNJ) declared a quarterly dividend of $1.06 per share. The stock has gained 13% in the last twelve months. Shares of Johnson & Johnson (NYSE: JNJ) also increased 8% year to date.
By the end of the first quarter of 2021, 81 hedge funds followed by Insider Monkey held stakes in Johnson & Johnson (NYSE: JNJ) with a total value of $5.79 billion.
1. Danaher Corporation (NYSE: DHR)
Number of Hedge Fund Holders: 81
Topping the list of the 10 medical technology stocks to buy is Danaher Corporation (NYSE: DHR). The Washington-based healthcare company offers a variety of products and services in life sciences, diagnostics, and environmental and applied solutions segments. The company offers automation systems in diagnostics, research instruments and consumables, and software.
On July 16th, Benchmark analyst Robert Wasserman initiated coverage of Danaher Corporation (NYSE: DHR) a Buy rating and $330 price target, commenting that the company has benefited from the pandemic with a high demand for COVID-19-related diagnostic products and systems.
Danaher (NYSE: DHR) announced in June that it had inked a definitive deal to buy Aldevron, a privately held biotech firm in the United States, for $9.6 billion in cash. Shares of Danaher (NYSE: DHR) increased 6% in the previous month.
The company has a market cap of $202 billion. In the second quarter of 2021, Danaher Corporation (NYSE: DHR) had an EPS of $2.46, beating estimates by $0.41. The company’s revenue in the second quarter came in at $7.2 billion, an increase of 36.5% year over year. In the April quarter, Danaher (NYSE: DHR) declared a $0.21 per share quarterly dividend, in line with the previous. The stock has gained 45% in the last twelve months. Shares of Danaher Corporation (NYSE: DHR) also increased 30% year to date.
Out of the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm Bourgeon Capital is a leading shareholder in Danaher Corporation (NYSE: DHR) with 52,617 shares worth more than $14.1 million.
You can also take a peek at the 10 Stocks with Over 10 Years of Dividend Increases and 10 Best Large Cap Dividend Stocks to Buy Now.
