10 Best Medical Device Stocks To Buy According to Hedge Funds

5. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 81

Johnson & Johnson (NYSE:JNJ) develops, manufactures, and sells a range of products in the healthcare field through its subsidiaries. With a primary focus on products related to human well-being and health, the company operates through two segments: Innovative Medicine and MedTech. The MedTech segment includes an elaborate range of medical devices and products used in cardiovascular intervention, orthopedic, interventional solutions, surgery, and vision fields. Johnson & Johnson (NYSE:JNJ) also offers a commercially available intravascular lithotripsy (IVL) platform through its MedTech segment for peripheral artery disease (PAD) and coronary artery disease (CAD).

The company has solid fundamentals and a AAA credit rating, higher than the US government’s. Its elaborate portfolio features over 10 blockbuster drugs and a number of therapeutic domains, ranging from oncology to infectious diseases. Its medical device manufacturing segment further diversifies its operations. Johnson & Johnson (NYSE:JNJ) reported sales of $88.8 billion for fiscal year 2024, reflecting a 4.3% year-over-year growth. These strong results reflect the company’s high-growth strategy. It has a solid balance sheet and generates enough cash flow through its operations to cover its high-yielding dividend.

On January 13, Johnson & Johnson (NYSE:JNJ) announced the $14.6 billion acquisition of neurological drugmaker IntraCellular. This acquisition will allow the company access to Caplyta, an oral drug for the treatment of bipolar disorder and schizophrenia. Johnson & Johnson (NYSE:JNJ) has various other growth opportunities as well, such as the robotic-assisted surgery industry. It is developing the Ottava system to compete in the sector, which is expected to drive further growth for the company after its approval.