Investors interested in the Medical Devices industry generally keep themselves busy analyzing existing trends – like longer life expectancies, mergers and acquisitions, emerging market opportunities, increased regulatory scrutiny and health care reforms. However, here are some of the emerging trends that one should also take into account, as these might eventually transform the prospects of industry.
Add to it, the overall favorable Zacks Industry Rank (#52 for medical products and #81 for medical instruments – both of which indicate a positive outlook) makes it a favorable space to bet on.
Home medical devices market evolves: Of late, self-health care (of course with growing awareness) has become one of the driving forces within the home medical devices market. A recent report published in mddionline.com states that the global home healthcare market will reach $303.6 billion by 2020, up over 70% from $176.1 billion in 2013. Some of the bigger players in this niche are Bayer AG (BAYRY - Analyst Report), Abbott Laboratories (ABT - Analyst Report) and Cardinal Health among others.
3D printing reforming personalized care: The global medical 3D printing market (dental, medical prosthetic, orthopedic and surgical instruments) is estimated to reach $983.2 million by 2020 with an impressive CAGR of 20.3%, per Meticulous Research. Companies those are likely to rule this market include Stratasys Ltd and 3D Systems, Inc.
Mobile applications gaining popularity: At present more than 500 million smartphone users worldwide sport health-related apps on their mobile devices and the number is projected to climb to more than 1.7 billion by 2018. This indicates enormous opportunity in this segment.
In Vitro Diagnostics to dominate: According to a survey by EvaluateMedTech World Preview, in vitro diagnostics (IVD) is expected to emerge as the sector leader by 2020 (14% of the total medical device market) with sales of $71.6 billion reflecting annual growth of 6.1%. Roche Holding AG (RHHBY - Analyst Report) is expected to lead this space with a 17% market share and sales of $12.20 billion by 2020.
Such evolving trends, however, do not lead to the conclusion that emerging markets are losing their sheen. While economists are not naturally enthusiastic about the near-term prospects of currently troubled nations like Brazil, Russia and China, the appointment of promising political groups in India and Indonesia ensures that reform tops the economic agenda of both these countries. Per a ‘Fortune’ report by Ian Bremmer, along with Malaysia, these two nations are blessed with less socio-political conflict now.
4 Growth Stocks Under $10 to Buy Now
Amid such dynamic trends, if you are looking to ramp up the returns from your portfolio, we have handpicked four top-ranked growth stocks from the medical instruments space. Thanks to our new style score system, we have been able to identify these stocks. Moreover, all these stocks currently trade under $10.
Our research shows that stocks with Growth Style Scores of ‘A’ or ‘B’ when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy) offer the best investment opportunities in the growth investing space.
Xtant Medical Holdings, Inc. (BONE- Snapshot Report) provides biologics products to domestic and international markets. Investors can look forward to the company’s recent purchase of spinal surgery product maker X-spine Systems which is going to perfectly complement Xtant Medical’s leading orthobiologics portfolio.
BONE holds a Zacks Rank #2 (Buy) and has a Growth Style Score of ‘B’. The company has expected earnings growth rate of 60.9% for the next quarter.
RTI Surgical Inc. (RTIX - Snapshot Report) is a surgical implant company offering safe biologic, metal and synthetic implants that find use in sports medicine, general surgery, spine, orthopedic, trauma and cardiothoracic procedures.
RTIX holds a Zacks Rank #2 (Buy) and has a Growth Style Score of ‘A’. The company has an expected earnings growth rate of 93.9% for the current year. In the past one month, the Zacks Consensus Estimate for the current year has moved 25% higher.
Cogentix Medical, Inc. (CGNT - Snapshot Report) provides products for flexible endoscopy with advanced product lines featuring a streamlined visualization system and proprietary sterile disposable microbial barrier, known as EndoSheath technology.
CGNT carries a Zacks Rank #2 and has a Growth Style Score of ‘A’. The company has an expected earnings growth rate of 53.3% for the next quarter.
Synergetics USA, Inc. (SURG - Snapshot Report) is a supplier of precision surgical devices with focus on ophthalmology and neurosurgery. We are looking forward to the company’s early renewal of its supply agreement with Stryker Corporation which will extend through Mar 2019.
SURG holds a Zacks Rank #2 and has a Growth Style Score of ‘A’. The company’s expected earnings growth rate of 14.3% for the current year compares favorably with the S&P growth rate of 5.5%. In addition, the Zacks Consensus Estimate for the current year has seen an upward revision of 33.3% over the last 2 months.
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