3 Medical Product Stocks With Strong Potential to Gain in 2023
With robotic and remote medical services taking center stage, the nature of business in the medical instrument market has undergone a considerable change. Unfortunately, the industry has suffered as a result of numerous difficulties, including increased labor and raw material costs as well as freight costs. It is challenging to gauge the extent of the economic recovery due to these factors and concerns surrounding the appearance of new COVID strains in various regions of the world.
Many medical device companies reported a slow recovery in their core operations through the first half of 2022 but in the second half, personnel shortages and supply chain-related risks resurfaced.
Businesses that successfully adjusted to shifting consumer tastes are gradually seeing a recovery in their share price.
Here we discuss three medical instrument makers — Lantheus LNTH, Rockwell Medical RMTI and Viemed Healthcare VMD — that have gained so far this year amid lingering challenges. Their share price has moved up by more than 20%, significantly outperforming the industry as well as the S&P 500. These stocks also have a Growth Score of A or B, implying more upside for the stocks. Please note that the Growth Style Score analyzes the growth prospects of a company and also evaluates its corporate financial statements. Studies have shown that stocks exhibiting the best growth characteristics consistently outperform the market.
Image Source: Zacks Investment Research
While LNTH sports a Zacks Rank #1 (Strong Buy), RMTI and VMD carry a Zacks Rank #2 (Buy), indicating positive revisions in earnings per share (EPS) estimates lately. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lantheus
The company has a Growth Score of A. The Zacks Consensus Estimate for earnings has moved 11.8% and 14.7% north for 2023 and 2024, respectively, in the past 30 days. Shares of the company have rallied 67.8% so far this year.
Lantheus’ fourth-quarter 2022 revenues grew a whopping 103% year over year. The company expects revenues to grow in the range of 21.9%-24.1% in 2023. Lantheus is involved in developing, manufacturing, selling and distributing diagnostic medical imaging agents and products for the diagnosis of cardiovascular and other diseases.
Lantheus Holdings, Inc. Price
Lantheus Holdings, Inc. price | Lantheus Holdings, Inc. Quote
Rockwell Medical
The company has a Growth Score of A. The Zacks Consensus Estimate for loss has narrowed by 28.2% for 2023 in the past 60 days. Shares of the company have surged 95.1% so far this year.
Rockwell’s fourth-quarter 2022 revenues grew 26% year over year. The company expects revenues to grow by 7.1%-12.6% in 2023. Rockwell manufactures hemodialysis concentrates and dialysis kits, and sells, distributes and delivers such concentrates and dialysis kits, as well as other ancillary hemodialysis products, to hemodialysis providers in the United States.
Rockwell Medical, Inc. Price
Rockwell Medical, Inc. price | Rockwell Medical, Inc. Quote
Viemed Healthcare
The company has a Growth Score of B. The Zacks Consensus Estimate for earnings has moved 11.1% and 34.1% north for 2023 and 2024, respectively, in the past 60 days. Shares of the company have rallied 37.1% so far this year.
Viemed’s fourth-quarter 2022 revenues grew 30% year over year. The company expects revenues to grow 1.3%-12.6% in 2023. Viemed is a provider of in-home medical equipment and post-acute respiratory healthcare services in the United States.
Viemed Healthcare, Inc. Price
Viemed Healthcare, Inc. price | Viemed Healthcare, Inc. Quote
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Rockwell Medical, Inc. (RMTI) : Free Stock Analysis Report
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