Avanos Medical, Inc. (AVNS): A Bull Case Theory

This stock is one of several featured in our latest research. For more small-cap opportunities with asymmetric return potential, read our free article: Hidden Gems: 10 Small-Caps Worth Watching.

We came across a bullish thesis on Avanos Medical, Inc. on Ridire Research’s Substack. In this article, we will summarize the bulls’ thesis on AVNS. Avanos Medical, Inc.’s share was trading at $11.97 as of January 12th. AVNS’s trailing P/E was 164.60 according to Yahoo Finance.

Avanos Medical, Inc., a medical technology company, provides medical device solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. AVNS is a steady healthcare compounder operating within the entrenched infrastructures of pain management and enteral feeding, industries defined by safety, clinician familiarity, and regulatory stability.

Spun out of Kimberly-Clark, it thrives in slow-moving, regulation-heavy niches that create high barriers to entry and predictable cash flows. Its Coolief radiofrequency ablation system and On-Q pain pumps are embedded in national hospital pain protocols and bundled reimbursement codes, making them difficult to displace due to retraining, credentialing, and regulatory costs.

Similarly, the Corpak brand dominates in enteral feeding, trusted by ICU staff and dietitians through years of consistent safety data. Regulatory and brand credibility deepen Avanos’s moat—Coolief’s status as the first FDA-cleared RF system for osteoarthritis pain ensures lasting payer and physician loyalty, while the company’s reputation in high-risk care settings builds institutional trust. Macro tailwinds such as aging populations and the policy-driven shift toward non-opioid pain solutions further support growth. Though procedural inertia and long procurement cycles slow innovation, they also protect Avanos’s installed base and market share.

Key metrics include Coolief utilization across orthopedic and spine centers, gross margin expansion from higher-margin therapies, and a continued record of recall-free operations. Risks include pricing pressure from hospital procurement, volume softness in elective procedures, or an acquisition premium before the market fully recognizes its resilience. In essence, Avanos quietly compounds by monetizing stability—anchored in safe, reimbursed, repeatable care—and remains a low-beta, reliable franchise in an opioid-averse world where hospitals value predictability over disruption.

Previously we covered a bullish thesis on Medtronic plc (MDT) by Investing Intel in May 2025, which highlighted strong execution, segment-wide growth, and the planned diabetes spin-off to unlock value. The company’s stock price has appreciated approximately 20.16% since our coverage. This is because the thesis played out as expected. Ridire Research shares a similar view but emphasizes Avanos’s stable compounding in pain management and enteral feeding.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.