We recently published a list of the 10 Best Medical Device Stocks To Buy According to Hedge Funds. In this article, we are going to take a look at where Edwards Lifesciences Corporation (NYSE:EW) stands against other best medical device stocks to buy right now.
Overview of the Medical Devices Sector
According to a report by Mordor Intelligence, the medical devices market has a size of $681.57 billion as of 2025. The massive industry is expected to grow at a compound annual growth rate of 6.99% between 2025 and 2030, reaching a market size of $955.49 billion by the end of the forecast period.
This significant growth can be attributed to various megatrends in the healthcare sector. The aging population worldwide is one of the primary factors affecting the industry. This is especially true in high-income countries such as the US, as around 17% of the country’s population is 65 or older as of 2023. This is causing an increase in the prevalence of chronic diseases, which is ultimately driving the demand for medical devices.
This demand is anticipated to continue growing in the coming decades. According to statistics by the United Nations, the number of people aged 65 or older is anticipated to represent around 16% of the world’s population by 2050, which translates to around 1.5 billion people worldwide. This demographic shift is anticipated to materialize especially prominently in regions such as Europe and North America, where the population of 65 or older is expected to reach 26.9% by 2050.
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Continued Growth in the US Medical Device Manufacturing Sector
In addition, technological advancements such as the increasing use of AI, predictive analysis, and advanced algorithms are metamorphosing the healthcare technology industry. While North America is the largest medical device market, Asia-Pacific is the fastest growing.
Another report by Grand View Research estimates that the market size of medical device manufacturers in the US is around $256.2 billion as of 2024. It is expected to grow at a compound annual growth rate of 5.9% between 2025 and 2030. The primary reasons behind this growth include the increasing geriatric population, the growing number of road and sports accidents, the expanding geographic reach of the key players in the market, and the rising adoption of minimally invasive procedures in the industry.
The Future of the Healthcare Industry in the US
According to McKinsey, the healthcare industry is expected to continually undergo a shift in growth dynamics. Health services and technology (HST) revenue pools are anticipated to grow at a compound annual growth rate of 8% between 2023 and 2028, supported by double-digit growth in software platforms and advanced data and analytics. The sales of innovative technologies such as generative AI to payers and providers are further supporting this growth.
In addition, pharmacy services, especially those focused on specialty pharmacy, are expected to see continued growth. The launch of new therapies and increased utilization are expected to be the primary drivers of this growth. McKinsey estimates specialty pharmacy revenue will grow at a compound annual growth rate of 8% between 2023 and 2028, growing EBITDA for managed service providers and specialty pharmacies. Therefore, optimistic trends are materializing for the healthcare industry as a whole, including the medical device sector.
Our Methodology
We sifted through stock screeners, online rankings, and ETFs to compile a list of 20 medical device stocks. We then selected the top 10 most popular stocks among elite hedge funds as of Q3 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A skilled surgeon surrounded by a team of medical professionals performing a Transcatheter Heart Valve Replacement.
Edwards Lifesciences Corporation (NYSE:EW)
Number of Hedge Fund Holders: 55
Edwards Lifesciences Corporation (NYSE:EW) develops medical innovations for heart disease and critical care monitoring. Its products are categorized into four primary areas: Transcatheter Aortic Valve Replacement, Transcatheter Mitral and Tricuspid Therapies, Surgical Structural Heart, and Critical Care.
The company is considered a leader in the MedTech space due to its health value solutions and strong market position. Its stock has grown at a compound annual growth rate of around 16% over the past two decades. Although Edwards Lifesciences Corporation (NYSE:EW) has faced some headwinds in its recent transitional period, it is well-positioned for long-term growth. It has more than tripled its revenue and operating income over the last 12 years and has maintained operating margins over 25%. These historical trends reflect its strong business model.
Edwards Lifesciences Corporation (NYSE:EW) holds around 50% market share in the $7 billion transcatheter aortic valve replacement (TAVR) market. Its products in the sector are responsible for approximately 75% of the company’s revenue. Its focus on innovative solutions and products for structural heart disease thus lends it a competitive market advantage. The company ranks eighth on our list of the best medical device stocks to buy according to hedge funds.
Wedgewood Partners stated the following regarding Edwards Lifesciences Corporation (NYSE:EW) in its Q4 2024 investor letter:
“Edwards Lifesciences Corporation (NYSE:EW) was a contributor to quarterly performance but only slightly impacted annual portfolio performance. As we noted earlier this year, the Company’s flagship transcatheter aortic valve replacement (TAVR) franchise slowed as compared to the Company’s recent history. While the TAVR market is maturing, it is still far from saturated, as recent clinical trial results demonstrated. Many aortic stenosis patients prior to seeking TAVR treatment exhibit adverse symptoms, often prompting them to get the help of a doctor in the 7irst place. However, there is a large population afflicted with aortic stenosis that does not exhibit symptoms, which are monitored rather than treated with TAVR. Edwards presented data from its EARLY TAVR trial that showed 45 percent of untreated asymptomatic aortic stenosis exhibited no symptoms, still ended up dying, suffered a stroke, or were hospitalized for cardiac events compared to only 26 percent that had been treated with TAVR. The standard of care for a disease such as cancer is immediate intervention rather than waiting for symptoms to worsen. The EARLY trial could help position aortic stenosis treatment on a similar clinical footing as cancer treatment. Although this is just one study, it adds to the substantial body of knowledge that Edwards has created through its R&D investments, emphasizing how important their treatments are for patients. Edwards is well positioned for double-digit earnings growth over the next several years as they expand its structural heart franchise into new populations and indications.”
Overall, EW ranks eighth on our list of best medical device stocks to buy according to hedge funds. While we acknowledge the potential of EW, 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 EW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
