5. GE Healthcare Technologies Inc. (NASDAQ:GEHC)
Market Cap as of September 26: $42.61 billion
Number of Hedge Fund Holders: 49
GE Healthcare Technologies Inc. (NASDAQ:GEHC) is a medical technology company that provides a range of medical imaging, diagnostic, and therapeutic technologies and services. It offers solutions for a variety of clinical areas, including radiology, cardiology, ultrasound, women’s health, and oncology, committed to improving patient outcomes and advancing healthcare through innovation and technology.
Much of last year saw growth attributed to its AI-driven innovations in imaging and diagnostics, with tools like Edison True PACS improving radiologist efficiency. As healthcare facilities demand more accurate and efficient diagnostic tools, the company’s AI products have driven both operational efficiencies and revenue gains.
In the second quarter of 2024, the rising demand for its medical imaging and monitoring technologies, especially in hospitals and outpatient settings, helped generate a revenue of $4.84 billion, up 0.46% year-over-year. It delivered 1% organic revenue and 3% orders growth with all segments contributing. Excluding China, global revenue growth was 4%, and orders growth was 6%.
In the US, the company secured ~$800 million in contracts in Q2 for multimodality equipment, software, and services. Additionally, in July, it made notable advancements in developing proprietary AI tools aimed at improving clinical and operational efficiency. This included acquiring the AI division of Intelligent Ultrasound, which focuses on women’s health ultrasound AI, and forming a strategic partnership with AWS to develop foundational models and GenAI tools.
GE Healthcare Technologies Inc. (NASDAQ:GEHC) is a leading medical imaging company well-positioned to expand its market share as healthcare providers upgrade their equipment, while it also continues investing in digital health solutions powered by AI and cloud technology. Strategic partnerships and investments in healthcare infrastructure are driving growth, along with the increasing prevalence of chronic diseases. The focus on sustainability aligns with current market trends and strengthens its reputation. Overall, its expansions make it a promising investment opportunity.
Cooper Investors Global Equities Fund stated the following regarding GE HealthCare Technologies Inc. (NASDAQ:GEHC) in its Q2 2024 investor letter:
“However, we are keen to highlight other Stalwarts and Growth businesses we own that should benefit in a more profound way than hardware makers currently enjoying an initial build-out phase. To paraphrase Salesforce CEO Mark Benioff, if hardware is the picks and shovels of GenAI then data is the real gold.
Another example is GE HealthCare Technologies Inc. (NASDAQ:GEHC), a global leader in diagnostic imaging equipment across multiple modalities. AI algorithms are making image quality better, assisting image analysis via computer vision, and enabling devices to be more accessible for new users. The next stage will be data-driven; via its many points of penetration into the patient journey, GEHC is accumulating large amounts of data across pathology, genomics, and imaging. Harnessing AI tools across that data to drive better patient outcomes should enable improved sales, margins and returns from a more competitive product offering.”
