Medical Device Companies Outperformed the S&P 500 in the First Two Months of 2013: Large-Cap Ortho and Cardiac Names Outperformed Smaller Names in the Space

Wall Street Transcript

67 WALL STREET, New York - March 15, 2013 - The Wall Street Transcript has just published its Medical Devices Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Orthopedics and Cardiovascular Medical Devices - Medical Device Innovation and Consolidation Trends - Cardiac - Health Care - Affordable Care Act

Companies include: Boston Scientific Corporation (BSX), Zimmer Holdings Inc. (ZMH), Stryker Corp. (SYK), Medtronic, Inc. (MDT), Abbott Laboratories (ABT), Covidien, Ltd. (COV), Baxter International Inc. (BAX), The Cooper Companies Inc. (COO), Endologix Inc. (ELGX), Wright Medical Group Inc. (WMGI) and many more.

In the following excerpt from the Medical Devices Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Are you finding those names in a certain subsector or are they all over the industry?

Ms. Wuensch: All over. The S&P 500 equipment and supplies index has outperformed the S&P 500 in the first two months of 2013. Some of the underperformers from last year have outperformed, but some of the more consistent, diversified names where we spend a lot of time have also done well. We've seen names move up nicely. Boston Scientific (BSX) has been the top performer in the space, on the heels of a depressed multiple. They are welcoming new management, and management has been talking more and more about the pipeline.

Some of the larger-cap orthopedic names such as Zimmer (ZMH) and Stryker (SYK) have also done well. And even the larger-cap cardiology names outside of Boston Scientific have had great starts for 2013. Medtronic (MDT) is up 10% year to date. The new Abbott (ABT) is up 7%. Covidien (COV) is up 10%. CareFusion (CFN) is up 15%. In general, the larger-cap names have outperformed the smaller-cap names as new money has come into the group.

TWST: You still like some of these names despite the runup?

Ms. Wuensch: We've been moving our "outperform" ratings around a little bit. In the larger-cap names, we're recommending Covidien, Baxter (BAX), Abbott, CareFusion, Zimmer and Medtronic. In the midcap space it is...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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