2. GE HealthCare Technologies Inc. (NASDAQ:GEHC)
Forward Price-to-Earnings Ratio: 19.8
Market Cap as of October 1: $42.86 billion
Number of Hedge Fund Holders: 49
GE HealthCare Technologies Inc. (NASDAQ:GEHC) is a medical technology company, spun-off from General Electric on January 4, 2023. It provides integrated care solutions that create actionable insight across the healthcare system and care pathway, enabling better clinical and financial outcomes. Its AI-powered imaging and diagnostic tools, like Edison True PACS, have boosted radiologist efficiency and driven revenue growth in healthcare.
As healthcare providers upgrade their equipment in areas like MRI, CT, and ultrasound, this company is poised to benefit. It’s also expanding its digital health solutions, including AI-powered analytics and cloud-based services to improve patient care and operational efficiency in an increasingly telehealth-focused environment. Strategic partnerships within the healthcare ecosystem enhance its capabilities and drive innovation further.
The company secured contracts with ~$800 million in the US market in Q2 2024, for healthcare equipment, software, and services. In July, it acquired the AI division of Intelligent Ultrasound, specializing in women’s health ultrasound AI, and partnered with AWS to develop foundational models and GenAI tools.
The rising demand for its medical imaging and monitoring technologies, especially in hospitals and outpatient settings, helped Q2 revenue grow 0.46% year-over-year. It delivered 1% organic revenue and 3% orders growth with all segments contributing. Global revenue growth was 4%, and order growth was 6% excluding China.
GE Healthcare Technologies Inc. (NASDAQ:GEHC) is expanding its market share through equipment upgrades, digital health investments, and strategic partnerships. Its focus on sustainability aligns with market trends, making it a promising investment.
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.”
