In this article we discuss the 5 medical device stocks for 2021. If you want to read our detailed analysis of the medical device sector, go directly to the 10 Medical Device Stocks for 2021.
5. Stryker Corporation (NYSE: SYK)
Number of Hedge Fund Holders: 46
Stryker Corporation (NYSE: SYK) is a medical technology company. Its products include implants for hip and knee joint replacements, surgical equipment and navigation systems, and endoscopic and communications systems, among a range of others. The company ranks 5th on our list of medical device stocks for 2021.
On June 1st, Stryker Corporation (NYSE: SYK) was upgraded to Outperform by Evercore ISI, and its price target was increased from $26o to $285 in light of its 2021 growth. In the first quarter of 2021, the company’s EPS came in at $1.93 versus estimates of $1.98, while its revenue was valued at $3.95 billion. The company also has a growth profit margin of 63.9%. Stryker Corporation (NYSE: SYK) has gained 11.18% in the past 6 months and 9.92% year to date.
By the end of the first quarter of 2021, 46 hedge funds out of the 866 tracked by Insider Monkey held stakes in Stryker Corporation (NYSE: SYK), with a total stake value of roughly $3.15 billion. This is compared to 44 hedge fund holders in the previous quarter, with stakes valued at about $3.22 billion.
4. Align Technology, Inc. (NASDAQ: ALGN)
Number of Hedge Fund Holders: 49
Align Technology, Inc. (NASDAQ: ALGN) is a medical device company working on manufacturing Invisalign clear aligners and iTero intraoral scanners for orthodontists and general practitioner dentists. The company ranks 4th on our list of medical device stocks for 2021.
Align Technology, Inc. (NASDAQ: ALGN) announced an accelerated stock repurchase agreement in collaboration with The Goldman Sachs Group, Inc. (NYSE: GS) this May. The stock has gained in light of the announcement of this $100 million transaction to buy back the company’s common stock. For the first quarter of 2021, the company’s EPS was valued at $2.49 versus estimates of $2.01, and it raked in revenue valued at $894.77 million, representing a 16.89% growth year over year. Align Technology, Inc. (NASDAQ: ALGN) has a gross profit margin of 72.66% and has gained 15.18% in the past 6 months plus 14.86% year to date. The stock currently has a consensus Buy rating.
By the end of the first quarter of 2021, 49 hedge funds out of the 866 tracked by Insider Monkey held stakes in Align Technology, Inc. (NASDAQ: ALGN), with a total stake value of roughly $2.83 billion. This is compared to 50 hedge fund holders in the previous quarter, with stakes valued at about $2.48 billion.
Harding Loevner, an investment management firm, mentioned Align Technology, Inc. (NASDAQ: ALGN) in its fourth-quarter 2020 investor letter. Here’s what they said:
“If you must head to one of the economy’s hot spots, perhaps look for soft wear rather than software. Align Technology was founded in 1997 in a Silicon Valley duplex with a singular vision: use technology to straighten teeth. Align pioneered computer-aided invisible orthodontics as an alternative to metal braces, and has now treated over 9 million patients with its Invisalign clear aligners. Align utilizes direct-to-consumer advertising to pull patients into participating dentists’ offices, equipping practitioners with real-time visualization and algorithm-assisted treatment planning to create and fit bespoke flexible plastic aligners. The company has been expanding its acceptance among practitioners for decades, but during the pandemic the numbers of those seeing the benefits of being able to treat patients with less chair time and fewer visits seems to have reached a tipping point. Like Disney, Align has also used the crisis to expand its digital marketing, reaching stay-at home teens and adults spending hours on Zoom, increasingly focused on how their teeth look on camera. As dental offices have reopened, Align’s earnings have benefitted from pent-up demand. It is emerging from the pandemic with a larger market share in orthodontics and a larger mind share with consumers.”
3. Becton, Dickinson and Company (NYSE: BDX)
Number of Hedge Fund Holders: 65
Becton, Dickinson and Company (NYSE: BDX) is a developer of medical supplies, devices, lab equipment, and diagnostic products for distribution and sale worldwide. The company’s products include acute dialysis catheters, hypodermic syringes and needles, and infusion pumps, among a range of others. It ranks 3rd on our list of medical device stocks for 2021.
On June 23rd, Becton, Dickinson and Company (NYSE: BDX) received a 510(k) clearance from the FDA for their PeritX Peritoneal Catheter System. This system is the first of its kind to be approved by the FDA and works for the drainage of non-malignant ascites. Additionally, on June 8th the company announced that it had hit a milestone in injection needle orders during the pandemic, with 2 billion orders.
In the first quarter of 2021, Becton, Dickinson and Company (NYSE: BDX) had EPS valued at $4.55 versus estimates of $3.16 and its revenue valued at $5.32 billion, representing an 8.31% growth year over year. The company also has a gross profit margin of 47.32% and gained 1.05% in the past year. Becton, Dickinson and Company (NYSE: BDX) has a consensus rating of Buy.
By the end of the first quarter of 2021, 65 hedge funds out of the 866 tracked by Insider Monkey held stakes in Becton, Dickinson and Company (NYSE: BDX), with a total stake value of roughly $3.73 billion. This is compared to 65 hedge fund holders in the previous quarter, with stakes valued at about $3.96 billion.
2. Abbott Laboratories (NYSE: ABT)
Number of Hedge Fund Holders: 65
Abbott Laboratories (NYSE: ABT) is a medical device and healthcare company operating worldwide. The company’s Diagnostic Products segment provides lab systems for immunoassay, clinical chemistry, hematology, and transfusion; molecular diagnostics systems. It ranks 2nd on our list of medical device stocks for 2021.
On June 11th, Abbott Laboratories (NYSE: ABT) declared a $0.45 per share quarterly dividend with a forward yield of 1.64%. The new dividend will be payable on August 16th. In the first quarter of 2021, the company’s EPS was valued at $1.32 versus estimates of $1.27, and it brought in revenue valued at $10.46 billion at an increase of 16.34% year over year. Abbott Laboratories (NYSE: ABT) also has a gross profit margin of 56.84% and has gained 3.27% in the past 6 months and 1.7% year to date. The stock has a consensus Buy rating.
By the end of the first quarter of 2021, 65 hedge funds out of the 866 tracked by Insider Monkey held stakes in Abbott Laboratories (NYSE: ABT), with a total stake value of roughly $5.37 billion. This is compared to 64 hedge fund holders in the previous quarter, with stakes valued at about $4.3 billion.
Polen Capital, an investment management firm, mentioned Abbott Laboratories (NYSE: ABT) in its first-quarter 2021 investor letter. Here’s what they said:
“Abbott Laboratories developed and commercialized multiple COVID tests during 2020, delivering a double-digit performance in what could have otherwise been a very challenging year. Management expects earnings per share to grow more than 30% in 2021. We believe it is poised to sustainably deliver double-digit earnings per share growth even as COVID testing sales decline from an expected $6.5-7.5 billion in the fiscal year 2021 to potentially as low as $300-$500 million several years from now.
We have always been believers in Abbott management’s capital allocation prowess, and we think they continue to invest prudently.
Management is taking advantage of the COVID test profits to invest roughly $2 billion into R&D and marketing to bolster growth in the core business as it recovers from the pandemic. We think there could even be a durable increase in the longer-term growth rates of both the diagnostics and medical device segments, given investments in product development and direct-to-consumer (DTC) capabilities. Testing sales created a windfall for Abbott in the near term, and management is exploiting it with what we view as sound capital allocation.
We believe the company continues to be fairly valued despite being rewarded for such favorable business momentum during the quarter.”
1. Medtronic plc (NYSE: MDT)
Number of Hedge Fund Holders: 65
Medtronic plc (NYSE: MDT) is a medical device and healthcare company selling device-based medical therapies to hospitals, doctors, physicians, and patients across the globe. The company ranks 1st on our list of medical device stocks for 2021.
On June 21st, Medtronic plc (NYSE: MDT) received FDA expanded approval for the Arctic Front cardiac cryoablation catheters, resulting in the stock gaining. Piper Sandler analyst Matt O’Brien has since commented that they are positive on Medtronic plc (NYSE: MDT) shares because of the momentum from the cardiovascular business. In the first quarter of 2021, the company’s EPS was valued at $0.62 versus estimates of $0.18, and its revenue was valued at $6.51 billion, representing a 4.16% growth year over year. Medtronic plc (NYSE: MDT) has a gross profit margin of 65.67% and has gained 11.23% in the past 6 months and 9.23% year to date. It has a consensus Buy rating.
By the end of the first quarter of 2021, 65 hedge funds out of the 866 tracked by Insider Monkey held stakes in Medtronic plc (NYSE: MDT), with a total stake value of roughly $3.63 billion. This is compared to 59 hedge fund holders in the previous quarter, with stakes valued at about $2.81 billion.
You can also take a peek at 20 Biggest Healthcare Companies By Revenue and 10 Best Healthcare Dividend Stocks.
