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 Stryker Corporation (NYSE:SYK) 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 medical team wearing surgical masks and gloves carrying out a hip or knee joint replacement surgery with the help of surgical navigation systems.
Stryker Corporation (NYSE:SYK)
Number of Hedge Fund Holders: 55
Stryker Corporation (NYSE:SYK) is a medical technology company that offers products and services in Neurotechnology, Medical and Surgical, and Orthopedics and Spine. It operates through the MedSurg and Neurotechnology and the Orthopedics and Spine segments. The company’s medical devices and products include surgical navigation systems, surgical equipment, emergency medical equipment, endoscopic and communications systems, neurosurgical and neurovascular devices, Mako Robotic-Arm Assisted technology, and several other products. Stryker Corporation (NYSE:SYK) holds around 13,000 global patents to shield its products from replication.
Historically, the company’s annual sales have never dropped by more than 6%, even as far back as 1984. It also has a streak of paying and raising its dividends for 31 consecutive years. The demand for Stryker Corporation’s (NYSE:SYK) Mako robotic-assisted surgery systems is continually increasing, with record installations in the U.S. and globally during fiscal Q4 2024.
The company also reported 10% year-over-year organic sales growth for both fiscal Q4 2024 and the full-year 2024, along with a 16% year-over-year increase in adjusted EPS in fiscal Q4 2024. It completed seven acquisitions in 2024, strengthening its market position. Stryker Corporation (NYSE:SYK) expanded its presence in the fast-growing peripheral vascular market by acquiring Inari Medical. The company is thus one of the best medical device stocks, and takes the ninth spot on our list.
Parnassus Core Equity Fund stated the following regarding Stryker Corporation (NYSE:SYK) in its Q3 2024 investor letter:
“We view Stryker Corporation (NYSE:SYK) as a best-in-class medical technology provider. It is a leader in most of its end markets and has a broad product offering, which has helped it achieve significant revenue and market share growth compared to its competitors. Stryker is particularly dominant in orthopedics, and we are optimistic about upcoming product launches, including the expansion of its Mako robotic-assisted surgery arm. The company also has one of the top industry CEOs with a strong track record of leading successful innovations and mergers and acquisitions to help the company grow.”
Overall, SYK ranks ninth on our list of best medical device stocks to buy according to hedge funds. While we acknowledge the potential of SYK, 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 SYK 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.
