Piper Sandler’s Top Technical Stock Picks: 20 Best Stocks

10. Teleflex Incorporated (NYSE:TFX)

Number of Hedge Fund Holders In Q2 2024: 36

Teleflex Incorporated (NYSE:TFX) is a medical instruments company that makes and sells devices such as catheters and blood withdrawal products. The nature of its industry means that a key driver of the firm’s hypothesis is economies of scale since they allow the firm to compete on a cost basis. Between 2021 and 2023, Teleflex Incorporated (NYSE:TFX) has grown its revenue by roughly $160 million, which isn’t much considering that the trailing twelve month revenue is $3 billion. This slow growth has also affected the firm’s valuation, with its forward P/E ratio of 15 being lower than the sector median of 16. However, Teleflex Incorporated (NYSE:TFX) might see significant tailwinds in the future due to the FDA’s advisory to healthcare professionals to move away from a rival’s balloon pumps. The firm is the second biggest player in the market, and it could grow its revenue as a result. Teleflex Incorporated (NYSE:TFX)’s stable market has also meant that the firm has paid dividends for 48 years.

Janus Henderson mentioned Teleflex Incorporated (NYSE:TFX) in its Q2 2024 investor letter. Here is what the fund said:

“Teleflex, a medical device company, was among the top relative detractors. The stock underperformed in the quarter despite reporting earnings results that were in line with estimates. In a period of very high levels of medical utilization post-Covid 19 for many companies, Teleflex’s results, particularly from its key product, UroLift, have been underwhelming. Also weighing on the stock is conservative 2024 guidance due to the impact of recent acquisitions on the business. We remain attracted to the company from a valuation standpoint, as we believe its longer-term growth prospects are undervalued by the market; however, we are monitoring the company’s capital allocation decisions to include further M&A and/or share repurchases.”