IHI: What's Worth Buying Here?

$iShares U.S. Medical Devices ETF(IHI)$ down 20%+ YTD looks like a clear overreaction. Naturally, I started thinking about what’s worth buying here.

$Boston Scientific(BSX)$ and $Abbott Laboratories(ABT)$ are cheaper vs history, no doubt. But do they compound at 20% over the next 5 years? I’m not convinced.

If anything, I’d rather pay up for the highest quality name $Intuitive Surgical(ISRG)$, even after a 30% drawdown from highs.

That said, I keep coming back to my highest conviction names: $TransMedics Group, Inc.(TMDX)$ and $PROCEPT BioRobotics(PRCT)$.

Both, in my view, have a real shot at ~30% CAGR over a 5-year horizon.

So instead of rotating into “cheaper” names, I’m leaning harder into growth. Yes, more risk but also more upside.

20%+ revenue growth, operating leverage kicking in, potential multiple expansion, and a sector narrative that will eventually turn.

I’d rather be early on great businesses than comfortable in average ones.

Thoughts?

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