Top Medical Device Stocks to Watch in 2024
According to Fortune Business Insights, the global medical device market surpassed $500 billion in 2023 and is projected to reach nearly $890 billion by 2032, with a compound annual growth rate (CAGR) of 6.3% from 2024 to 2032.
Here are some standout medical device stocks to consider for 2024:
1. $Abbott Laboratories(ABT)$
Abbott produces a wide variety of medical devices, including continuous glucose monitoring (CGM) systems, defibrillators, heart failure monitoring systems, mechanical heart valves, pacemakers, and spinal stimulators.
The company also has diverse operations in pharmaceuticals, diagnostics, and nutritional products. Its FreeStyle Libre is the best-selling CGM device globally and an essential growth driver. Abbott has increased its dividend for 52 consecutive years, earning it a reputation as a dividend king.
2. $GE HEALTHCARE TECHNOLOGIES INC(GEHC)$
After spinning off from General Electric in 2023, GE Healthcare focuses on four main areas: imaging, ultrasound, patient care solutions, and pharmaceutical diagnostics. Medical imaging accounts for over half of its total revenue. With more than $1 billion invested annually in R&D, the company is well-positioned to benefit from the aging global population.
3. $Intuitive Surgical(ISRG)$
As a pioneer in minimally invasive robotic surgery, Intuitive Surgical's Da Vinci surgical system has been in use since its 1999 IPO. With over 9,800 systems installed worldwide and over 15 million surgeries performed, including more than 2.2 million in 2023 alone, demand for these surgeries is on the rise. Recurring revenue now represents more than 80% of the company's total income, signaling strong growth ahead.
4. $Johnson & Johnson(JNJ)$
A leading global medical device manufacturer, Johnson & Johnson offers a comprehensive range of products, including catheters, implants, robotic surgical systems, surgical instruments, and wound closure products. Acquisitions have played a key role in expanding its medical device business, with notable purchases like Abiomed and Verb Surgical in recent years.
The company spun off its consumer health business into the independent publicly traded company KenVue in 2023. Johnson & Johnson has raised its dividend for 62 consecutive years, solidifying its status as a premier dividend stock.
5. $TransMedics Group, Inc.(TMDX)$
TransMedics is a small medical device company focused on portable organ preservation devices (OCS). This innovative technology significantly increases both the quantity and success rate of organ transplants while reducing post-transplant complications.
The company has even established a dedicated air transport team for donated organs. TransMedics expects its revenue to grow by around 80% in 2024, with profits continuing to rise.
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