8 Most Promising Medical Stocks According to Hedge Funds

3. GE Healthcare Technologies Inc. (NASDAQ:GEHC)

Number of Hedge Fund Holders: 49 

GE Healthcare Technologies Inc. (NASDAQ:GEHC) is a global leader in medical technology, focusing on advanced imaging, ultrasound, and patient care solutions. The company produces a variety of healthcare products, including CT scanners, MRI machines, X-ray systems, and ultrasound devices, along with digital healthcare IT and AI-enabled technologies. GE HealthCare primarily serves hospitals, clinics, and healthcare providers worldwide.

The company is expanding its product portfolio with innovations like the LOGIQ E10 Series ultrasound featuring AI solutions, the Deep Learning portfolio for CT imaging, and real-time collaboration tools for radiology teams. Additionally, GE Healthcare is developing products for emerging markets, such as a $1,000 handheld ECG device for rural India and a portable ultrasound machine for rural China, which also have applications in developed markets. The company is forming value-based partnerships with healthcare providers to drive technological transformation, improve patient outcomes, and support long-term revenue growth.

GE Healthcare Technologies Inc. (NASDAQ:GEHC) reported revenues of $4.8 billion in Q2 2024, remaining flat year-over-year but achieving 1% organic growth driven by positive pricing and volume, despite challenges in the Chinese market. Profitability improved in Q2, with net income margin rising to 8.9% from 8.7% and adjusted EBIT margin expanding to 15.3% from 14.8%, primarily due to productivity gains and favorable pricing strategies. Diluted EPS increased to $0.93, while adjusted EPS rose to $1.00, reflecting 8.7% year-over-year growth driven by higher EBIT and lower interest expenses.

The company’s growth catalysts include strategic collaborations, such as a partnership with AWS to advance healthcare transformation using generative AI, plans to acquire a clinical AI business from Intelligent Ultrasound, the launch of new products like the MIM Symphony HDR Prostate for MR image guidance, and expanded partnerships with organizations like Tampa General Hospital to enhance patient and clinician outcomes across Florida.

As of Q2, 2024, 49 hedge funds in the Insider Monkey database held shares in the stock. GE Healthcare Technologies Inc. holds a moderate buy rating, with 12 Wall Street analysts providing 12-month price targets over the last 3 months. The average price target is $95.25, with a high of $105.00 and a low of $74.00, indicating a potential 4.28% increase from the current price of $91.34.