7 Best Medical Technology Stocks To Buy According To Analysts

In this article, we will be taking a look at the 7 best medical technology stocks to buy according to analysts.

Growth and Drivers of the Global MedTech Market

The MedTech sector is crucial in healthcare, which concentrates on the creation of medical devices aimed at enhancing disease prevention, diagnosis, and treatment. Prominent products in this field include well-known devices like pacemakers, imaging equipment, dialysis machines, and a range of implants.

A study by Mordor Intelligence estimates that the medical equipment market will be worth $681.57 billion by 2025. The enormous industry is anticipated to reach a market value of $955.49 billion by the end of the forecast period, growing at a compound yearly growth rate of 6.99% between 2025 and 2030.

Numerous megatrends in the healthcare industry are to blame for this considerable expansion. One of the main elements influencing the sector is the aging of the global population. This is particularly true in wealthy nations like the US, where, as of 2023, 17% of the population is 65 years of age or older. The demand for medical equipment is ultimately being driven by the rise in the prevalence of chronic diseases.

In the ensuing decades, this need is expected to keep increasing. The United Nations estimates that by 2050, there will be more than 1.5 billion individuals worldwide who are 65 years of age or older, accounting for about 16% of the global population. In regions like Europe and North America, where the proportion of people 65 and older is predicted to reach 26.9% by 2050, this demographic change is likely to manifest particularly strongly.

Transformations and Growth Drivers in Healthcare IT and Medical Devices

Furthermore, the healthcare IT sector is undergoing a transformation due to technological developments including the growing application of AI, predictive analysis, and sophisticated algorithms. Asia-Pacific is the medical device market with the greatest rate of growth, although North America still holds the largest share.

According to a different Grand View Research analysis, the US medical device manufacturing market is expected to reach a value of approximately $256.2 billion by 2024. Between 2025 and 2030, it is anticipated to expand at a compound annual growth rate of 5.9%. The growing frequency of traffic and sports accidents, the aging population, the geographic expansion of the major market participants, and the increased use of minimally invasive procedures in the sector are the main causes of this growth.

McKinsey predicts that the growth dynamics of the healthcare sector will continue to change. Between 2023 and 2028, it is projected that revenue pools related to health services and technology (HST) would expand at a compound annual growth rate of 8%, driven by double-digit growth in software platforms and advanced data and analytics. This expansion is also being supported by the selling of cutting-edge technologies to payers and providers, such as generative AI.

Additionally, it is anticipated that pharmaceutical services—particularly those pertaining to specialty pharmacy—will continue to expand. Increased use and the introduction of novel treatments are anticipated to be the main forces behind this expansion. According to McKinsey, between 2023 and 2028, specialty pharmacy revenue is expected to increase at a compound annual growth rate of 8%, which will increase managed service providers’ and specialty pharmacies’ EBITDA.

Our Methodology 

For this list, we selected stocks with an analyst upside of 20%-50%, a market capitalization of over $2 billion, institutional ownership above 40%, and low short interest. We then ranked these stocks based on their analyst upside.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Here is our list of the 7 best medical technology stocks to buy according to analysts.

7. Globus Medical, Inc. (NYSE:GMED)

Price Target Upside: 20.72%

Globus Medical, Inc. (NYSE:GMED) is a leading medical device company specializing in musculoskeletal solutions, including spine surgery, trauma treatment, and joint replacement. It designs and commercializes innovative implants, instruments, and advanced technologies, primarily serving hospitals, physicians, and surgical centers. The company stands out for its commitment to innovation, rapid product development, and focus on advancing patient care. Notably, it has pioneered expandable solutions for interbody fusion and corpectomy, as well as robotics and navigation with its ExcelsiusGPS platform, enhancing precision in spine surgery.

Globus Medical, Inc. (NYSE:GMED) had a strong finish to 2024, achieving record sales of $657 million in Q4, a 7% increase from the previous year. Earnings per share (EPS) grew by 40% to $0.84, and free cash flow surged by 136% to $193 million. Enabling Technology sales also saw impressive growth, rising 44% year-over-year. For the full year, the company generated $2.519 billion in revenue, a 61% increase, with a record EPS of $3.04 and free cash flow reaching $405 million, up 145% from the previous year.

This growth was driven by strong demand across its product lines, particularly in expandables, MIS screws, cervical offerings, and 3D-printed spacers. Increased implant sales from robotic procedures, strategic hiring of experienced sales representatives, and the launch of five new products in Q4 also played a key role.

Despite its rapid expansion, Globus Medical, Inc. (NYSE:GMED) maintained strong profitability, with an adjusted EBITDA margin of 29.2%. Its disciplined financial management and efficiency improvements helped sustain record-breaking free cash flow, reinforcing its position as one of the Best Medical Technology Stocks.

6. QuidelOrtho Corporation (NASDAQ:QDEL)

Price Target Upside: 26.55%

QuidelOrtho Corporation (NASDAQ:QDEL) is a global leader in vitro diagnostics, developing innovative tests for detecting infectious and chronic diseases. The company stands sixth among the best medical technology stocks to buy according to analysts. Its solutions support rapid and accurate decision-making in various settings, from homes and clinics to hospitals and labs. The company’s product portfolio includes point-of-care rapid tests, advanced transfusion medicine solutions, clinical laboratory diagnostics, and molecular platforms for swift pathogen identification, ensuring broad healthcare impact.

QuidelOrtho Corporation (NASDAQ:QDEL)’s Q4 2024 financial report shows a company in transition, with $708 million in revenue, down 4% from last year. Adjusted EBITDA was $150 million, with a 21% margin, and adjusted diluted EPS stood at $0.633. The company experienced a decline in COVID-19 and influenza-related revenue, but its core lab business grew by 4%. It ended the quarter with a cash balance of $98 million.

QuidelOrtho Corporation (NASDAQ:QDEL)’s recurring revenue model, with over 90% of sales from reagents, consumables, and services, provides stability. The corporation is focusing on cost optimization, targeting $100 million in savings, which should drive higher margins in 2025 and beyond. The company is also advancing its innovation pipeline with clinical trials for the Savanna Respiratory Panel.

Looking forward, QuidelOrtho Corporation (NASDAQ:QDEL) is positioned to capture a larger share of the growing diagnostics market. Analysts are optimistic about its potential for long-term growth, supported by the company’s guidance of $2.60 billion to $2.81 billion in revenue for 2025, along with a forecasted adjusted EBITDA of $575 million to $615 million.

5. Glaukos Corporation (NYSE:GKOS)

Price Target Upside: 27.90%

Glaukos Corporation (NYSE:GKOS) is a medical technology company focused on innovative treatments for eye diseases like glaucoma, corneal disorders, and retinal diseases. The company develops micro-invasive surgical devices and drug delivery systems to improve patient outcomes. Key products include the iStent and iStent inject W micro-bypass stents for treating open-angle glaucoma and the iDose TR, an intracameral implant that delivers glaucoma medication for up to three years.

Glaukos Corporation (NYSE:GKOS) reported a strong performance in Q4 2024, with net sales reaching $105.5 million, a 28% increase year-over-year. Full-year 2024 sales totaled $383.5 million, up 22% from 2023, and the company expects continued growth with a projected sales range of $475 to $485 million for 2025. The growth was mainly driven by the success of iDose TR, a novel glaucoma therapy, which saw record sales in Q4. This dropless treatment is gaining popularity for its ability to improve patient outcomes.

Glaukos Corporation (NYSE:GKOS) faces potential challenges, such as foreign currency fluctuations, competition in international markets, reimbursement issues, and the expiration of the Hydros royalty, which may affect revenues outside of iDose TR. Despite these hurdles, the company is seen as a leader in the glaucoma market, with promising prospects for further growth in the ophthalmology sector.

4. Inspire Medical Systems, Inc. (NYSE:INSP)

Price Target Upside: 29.04%

Inspire Medical Systems, Inc. (NYSE:INSP) develops and commercializes innovative solutions for obstructive sleep apnea (OSA), primarily through its implantable Inspire therapy system. This device, surgically implanted near the collarbone, keeps the airway open during sleep and includes a remote control and an app for tracking sleep data. Unlike traditional treatments like CPAP machines, Inspire offers a non-invasive, implantable solution that directly addresses the root cause of OSA.

Inspire Medical Systems, Inc. (NYSE:INSP) reported strong financial performance in Q4 2024, with revenue reaching $239.7 million, a 25% increase from the previous year. This growth was driven by the rising adoption of Inspire therapy in the US. The company also achieved net income of $35.2 million, a significant jump from $14.8 million in Q4 2023, translating to diluted net income of $1.15 per share. 2024 marked the corporation’s first full year of profitability, with diluted net income of $1.75 per share compared to a loss in 2023. Operating cash flow for the quarter was $69 million, totaling $130 million for the year, reinforcing their strong financial position.

As one of the best medical technology stocks, the company received FDA approval for the Inspire V neurostimulation system, which features internal respiratory sensing, eliminating the need for an additional lead. This approval is expected to simplify the procedure for physicians and reduce production costs. The growing demand for Inspire therapy, improved operational efficiency, and strong cash flow make the company well-positioned for continued growth in the large OSA market, presenting a promising investment opportunity.

3. LivaNova PLC (NASDAQ:LIVN)

Price Target Upside: 41.53%

LivaNova PLC (NASDAQ:LIVN) is a global medical technology company specializing in innovative devices for cardiovascular and neuromodulation therapies. Its product portfolio includes heart-lung machines, oxygenators, and neuromodulation devices, primarily sold to hospitals and healthcare providers. The company operates in two main segments: Cardiac Surgery, which offers a range of cardiopulmonary equipment, and Neuromodulation, focusing on devices like the VNS Therapy System for treating drug-resistant epilepsy and depression.

LivaNova PLC (NASDAQ:LIVN)’s Q4 2024 earnings showed solid growth despite some challenges. Overall revenue increased by 5%, with organic growth of 7% compared to Q4 2023. For the full year, organic revenue grew by 11%, marking two consecutive years of strong growth. The Cardiopulmonary segment led the way with an 11% increase in Q4 revenue, while revenue from epilepsy treatments in Europe and international markets declined by 9%.

LivaNova PLC (NASDAQ:LIVN)’s profitability improved, with an adjusted gross margin of 69% in Q4, up from 68% last year, and operating income rising to $56 million. However, adjusted diluted earnings per share dropped to $0.81 due to a higher tax rate. The corporation ended the year with a cash balance of $429 million, up significantly from $267 million at the end of 2023. Adjusted free cash flow also grew by 70% to $163 million.

As one of the best medical technology stocks, LivaNova PLC (NASDAQ:LIVN) is well-positioned for growth, with revenue growth expected to be between 5% and 6% in 2025. They also anticipate organic growth of 6% to 7%, adjusted EPS of $3.65 to $3.75, and adjusted free cash flow of $135 million to $155 million.

2. Bruker Corporation (NASDAQ:BRKR)

Price Target Upside: 44.18%

Bruker Corporation (NASDAQ:BRKR) stands second among the best medical technology stocks to buy according to analysts. It is a leading provider of scientific instruments and analytical solutions, specializing in mass spectrometers, X-ray technologies, magnetic resonance instruments, and optical spectroscopy tools. The company serves a wide range of sectors, including life science research, pharmaceuticals, biotechnology, academia, and industrial markets.

Bruker Corporation (NASDAQ:BRKR) reported strong financial results for Q4 2024, with revenue of $979.6 million, a 14.6% year-over-year increase. Organic revenue grew by 3.9%, and non-GAAP EPS rose by 8.6% to $0.76. Free cash flow for the quarter was $151.1 million. For the full year, the corporation generated $3.37 billion in revenue, reflecting a 13.6% increase, and expects 11% to 13% EPS growth in 2025. The company’s growth was driven by strong international performance, recovery in the biopharma sector, and strong results in markets like microbiology, semiconductors, AI, and applied sciences.

Additionally, Bruker Corporation (NASDAQ:BRKR) acquired NanoString, which may temporarily dilute operating margins in Q1 2025 but is expected to provide long-term strategic benefits, with a near breakeven outlook for 2026.

1. Bio-Rad Laboratories, Inc. (NYSE:BIO)

Price Target Upside: 47.82%

Bio-Rad Laboratories, Inc. (NYSE:BIO) is a global leader in creating innovative products for life science research and clinical diagnostics. The company develops instruments, software, consumables, reagents, and content for applications in areas like cell biology, gene expression, protein purification, and clinical diagnostics.

Bio-Rad Laboratories, Inc. (NYSE:BIO)’s Q4 2024 results show a mixed performance, with net sales declining by 2% year-over-year to $668 million. The Clinical Diagnostics Group saw a slight increase of 0.9%, driven by strong demand for quality control and blood typing products. Gross margin decreased to 51.2%, impacted by restructuring and changes in reimbursement in China. Operating income fell to $58 million, while the company reported a significant net loss of $716 million, mainly due to a $977 million loss from changes in the fair market value of Sartorius AG shares.

On a positive note, their non-GAAP results showed a gross margin of 53.9%, and non-GAAP net income was $81 million, or $2.90 per share. For the full year, the corporation’s net sales were $2.567 billion, a 3.9% decline from 2023. Despite the challenges, Bio-Rad Laboratories, Inc. (NYSE:BIO), one of the best medical technology stocks, is actively managing costs to improve future profitability. Additionally, the company has made a binding offer to acquire Stilla Technologies, which will enhance its digital PCR portfolio and strengthen its position in applied research and clinical diagnostics.

Overall, Bio-Rad Laboratories, Inc. (NYSE:BIO) ranks first among the 7 best medical technology stocks to buy according to analysts. While we acknowledge the potential of medical technology companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BIO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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