7 Best Medical Device Stocks To Buy Right Now

1. Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Hedge Fund Holders: 108 

Thermo Fisher Scientific Inc. (NYSE:TMO) tops the list for being the best medical device stocks to buy right now. Thermo Fisher’s product portfolio is vast, encompassing everything from basic lab equipment to sophisticated analytical instruments. They produce items such as centrifuges, microscopes, PCR machines, mass spectrometers, and chromatography systems. Additionally, they offer a comprehensive suite of reagents, chemicals, and consumables used in various scientific applications.

In Q2 2024, Thermo Fisher Scientific Inc. (NYSE:TMO) reported $10.5 billion in revenue, a 1.3% year-over-year decline, yet exceeded analysts’ expectations by $23.4 million. Operating cash flow rose to $1.96 billion, and free cash flow increased to $1.7 billion. On September 20, Morgan Stanley raised the price target for TMO stock from $655 to $680, maintaining an Overweight rating and highlighting the company’s strong long-term growth outlook.

Regarding Thermo Fisher Scientific Inc. (NYSE:TMO), Polen Focus Growth Strategy made the following statement in its investor letter for the first quarter of 2024:

“We increased our positions in Thermo Fisher Scientific Inc. (NYSE:TMO), Visa, Zoetis, Nike, and Abbott Labs. Each of these companies is durable and available at attractive valuations, in our view, for the growth we see ahead. In fact, in the case of ThermoFisher, Nike, and Abbott Labs, we expect accelerating earnings growth in the back half of 2024 after more difficult earnings growth periods pass for each of these companies. ThermoFisher and Abbott will finally wind down most of their COVID-19 testing and vaccine-related efforts due to a lack of demand, so these should no longer be revenue growth headwinds.”

In Q2 2024, 108 hedge funds tracked by Insider Monkey held stakes in the stock with Fisher Asset Management being the largest stakeholder with shares worth $1,421,748,082. The stock also holds a Strong Buy rating based on 17 Wall Street analysts.

“Overall, TMO ranks first among the 7 best medical device stocks to buy now. While we acknowledge the potential of medical companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GOOGL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.”

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