Why These 15 Healthcare Stocks Are Surging in 2025

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5. Neuronetics Inc (NASDAQ:STIM)

Number of Hedge Fund Holders In Q4 2024: 5

Neuronetics Inc (NASDAQ:STIM) is a medical device company that manufactures and markets NeuroStar Advanced Therapy, a leading transcranial magnetic stimulation (TMS) system for treating major depressive disorder and other mental health conditions.

The stock’s strong performance in early 2025 was driven by several transformative developments. The most impactful was the completion of its acquisition of Greenbrook TMS in December 2024. This deal combined Neuronetics’ technology with Greenbrook’s network of over 95 clinics, creating a vertically integrated leader in mental health therapy delivery and unlocking over $22 million in annualized cost synergies.

Neuronetics also reported preliminary full-year 2024 revenue of $74.5 million, with pro forma revenue (including Greenbrook) at $129.8 million. The company issued 2025 guidance for 12% to 19% year-over-year revenue growth and projected cash flow breakeven by the third quarter of 2025.

Another major catalyst was the FDA’s clearance in March 2024 for NeuroStar as a first-line add-on treatment for adolescent depression, expanding the addressable market by 35% and supporting future growth.

The consensus price target of $5.5 implies 22.77% upside.

STIM stock is up 178.26% year-to-date.

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