5 MedTech Stocks Poised to Continue Their Winning Streaks in 2024
Through the months of 2023, the MedTech industry has faced unprecedented pressures and challenges in the form of staffing shortages, supply chain disruptions and price competition stemming from record levels of inflation. Going by the current industrywide trend, the scenario started to normalize and shall further improve in the coming year. The industry has already witnessed early signs of improvement in supply chains and inflation that have allowed some companies to return to more regular manufacturing capabilities and gross margin improvement.
With improving healthcare awareness in the post-pandemic era, consumers are placing higher priority than ever before on achieving better medical outcomes and seeking greater personalization in their healthcare.
With the Fed’s potential rate cut in the cards in 2024, we expect to see an improvement in consumer purchasing power, which might again boost the demand for essential and non-essential healthcare products and services. The MedTech players are currently putting an all-out effort in the form of innovation and strategic investments to grab these growing market opportunities.
While the industry remains buffeted by demand headwinds, strategic measures, including the adoption of new technology and mergers and acquisitions to expand capabilities, bode well. Stocks like DexCom Inc. DXCM, Integer Holdings Corporation ITGR, Penumbra PEN, Haemonetics Corporation HAE, Health Equity, Inc. HQY and are likely to continue their strong performance in 2024.
MedTech in 2024
Strong sector fundamentals, such as robust procedure volumes and capital equipment order backlogs, a sharpened focus on profitability, and continued topline growth, combined with lower inflation and a better financing environment, should propel MedTech stock back to outperformance after a string of difficult years.
In the past few years, the MedTech market has grown exponentially and has transformed the healthcare industry. According to a report by, the global MedTech industry market size is estimated to grow from $642.5 billion in 2023 to $668.2 billion by 2024. Continued tech innovation, mergers and acquisitions (M&A), commercialization of new product lines and the emergence of new business models are contributing to the sustained growth of the market.
5 MedTech Stocks Poised to Run Higher
Based on strong fundamentals and healthy prospects, we have shortlisted stocks that are expected to continue their winning streak in 2024.
For this, we have taken the help of the Zacks Stocks Screener to choose stocks that have a market cap of more than $1 billion and currently carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). Our research shows that stocks with a Zacks Rank #1 or 2 offer the best investment options. Moreover, these stocks outperformed its industry this year.
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Here are the 5 MedTech stocks that meet the criteria:
DexCom: The company is benefitting from its continued focus on international markets. Dexcom is currently eyeing the sizeable markets of Korea, India, China and Japan. Given the demographic trends and lifestyle in countries outside the U.S. and Europe, DexCom has a sizeable international market opportunity.
DexCom’s international market expansion initiatives are all progressing according to plan, thereby driving high-volume growth. Thus, international growth remains strong and presents prospects courtesy of improving global access and awareness.
The company made continued advancements with respect to key strategic objectives and ended the quarter with new patient additions. Its slew of tie-ups and buyouts are encouraging.
DexCom, carrying a Zacks Rank #2, has an expected earnings growth rate of 18.2% for 2024. The Zacks Consensus Estimate for 2024 earnings of DXCM has been revised 6.9% upward in the past 90 days. Shares of DXCM have popped 9.6% so far this year.
Integer Holdings: The company’s focus on portfolio management is likely to drive growth. Its solid foothold in the MedTech space and focus on research and product development look promising.
Per management, Integer Holdings’ core business is well-positioned because its OEM customers leverage its portfolio of intellectual property. The company continues to build a healthy pipeline of diverse medical technology opportunities and provide a new level of industry-leading capabilities and services to its OEM customers across the full range of medical device products and services. Integer Holdings is also at the forefront of innovating technologies and products that help change the face of healthcare.
Integer Holdings, carrying a Zacks Rank #1, has an expected earnings growth rate of 15.1% for 2024. The Zacks Consensus Estimate for 2024 earnings of ITGR has been revised upward by 6.2% over the past 90 days. Shares of ITGR have surged 46.6% so far this year.
Penumbra: Penumbra is demonstrating strong growth within the company’s Vascular business, banking on the rapid increase in sales of the company’s vascular thrombectomy products in the United States. In this region, the company is benefitting from sales of new products and further market penetration of existing products. Lightning Flash and Lightning Bolt are also driving an acceleration in Penumbra’s U.S. vascular thrombectomy franchise, up 42% year over year in the third quarter. The company expects to see a robust growth trajectory in the Vascular arm in the next five years and beyond.
Internationally, the company projects early success with the launch of its first-generation computer-aided products in Europe. Penumbra has plans to expand access to its most-advanced thrombectomy products to its international vascular teams over the next few years.
Penumbra, carrying a Zacks Rank #2, has an expected earnings growth rate of 40.7% for 2024. The Zacks Consensus Estimate for 2024 earnings of PEN has been revised 5.5% upward in the past 90 days. Shares of PEN have surged 17.7% year to date.
Haemonetics: The company’s consistent growth performance over the past few quarters reflects its strategic focus on establishing leading positions in high-growth markets to generate solid financial returns. The company raised the Plasma business outlook for the fiscal 2024, driven by the continued strong plasma market momentum. Setting the standard in global plasma collection solutions, NexSys PCS with Persona is enabling customers to meet end-market demand safely and lower their cost per liter. An evolving Hospital portfolio looks highly promising.
On a promising note, Haemonetics continues to expand the hospital business with procedure-enabling technologies in high-growth areas like interventional cardiology and electrophysiology, creating additional opportunities in the total addressable market of nearly $3.7 billion. With the commercial strategy set on targeting the top 600 U.S. hospitals, the company is making significant progress, strengthening its relationship with the top accounts responsible for nearly 90% of procedures.
Haemonetics, carrying a Zacks Rank #2, has an expected earnings growth rate of 23.4% for 2024. The Zacks Consensus Estimate for 2024 earnings of HAE has been revised 1.8% upward in the past 90 days. Shares of HAE have surged 11.1% year to date.
HealthEquity: The company’s sustained strength in Health Savings Accounts (HSAs) looks promising as this is expected to enable it to maintain a leadership position in the HSA industry. It operates via a B2B2C business model and offers multiple cloud-based platforms, accessed by its members online via a desktop or mobile device, which buoys optimism.
The company’s market share (measured by HSA Assets) has increased from 4% in December 2010 to 20% in December 2022, as noted by the 2022 year-end Devenir HSA Research Report. As of Oct 31, 2023, HealthEquity administered 8.3 million HSAs, with balances totaling $22.6 billion (known as HSA Assets) and 7 million complementary CDBs. The aggregate number of HSAs and other CDBs administered, referred to as Total Accounts, was 15.3 million as of Oct 31, 2023.
HealthEquity, carrying a Zacks Rank #2, has an expected earnings growth rate of 50.6% for 2024. The Zacks Consensus Estimate for 2024 earnings of HQY has been revised 5.9% upward in the past 90 days. Shares of HQY have surged 6.8% year to date.
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Haemonetics Corporation (HAE) : Free Stock Analysis Report
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Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
