3 Growth-Focused MedTech Stocks To Buy Amid Coronavirus Crisis

The economic turmoil brought on by the coronavirus pandemic is showing barely any signs of easing. After a few months of some stability, a surge in the number of daily cases over the last ten days in the United States has derailed the ongoing easing of lockdown orders. This has triggered a fresh wave of panic among investors.

Per an article by The Atlantic, an all-time high of 62,000 new confirmed cases were recorded in the United States on Jul 8. However, as a flicker of hope, average daily deaths have declined 75% from the peak reached in April.

Meanwhile, despite upswings in some of the major benchmark indices leading to several temporary phases of market recovery over the past couple of months, the pessimism across major pandemic-battered U.S. industries is looming large.

Also, the World Bank’s June report, projecting a 5.2% contraction in the 2020 global GDP, intensifies this financial gloom.

The MedTech Picture

The U.S. MedTech industry, in particular, continues to grapple with pandemic-led economic crisis. That is primarily owing to global manufacturing and supply chain disruptions as well as deferral of elective medical/surgical procedures. Several MedTech firms, specifically those specializing in dental equipment supplies, cardiovascular, surgical implant and oncology procedures, reported heavy revenue losses in the first quarter of 2020.Apprehensions regarding a worsening second-quarter performance also loom large.

A notable example is of orthopedics major Zimmer Biomet Holdings (ZBH - Free Report), which has witnessed a 21.1% fall in its share price compared with its industry’s 9.3% fall over the past six months. Similarly, The Cooper Companies (COO - Free Report) has seen a 13.2% loss of its share price compared with 3.6% decline of its industry in the same time period.

Ideal Strategy for MedTech Investors

Amid the pandemic-induced market turmoil, when volatility peaks, it is always wise to resort to a longer-term investing strategy and pick some growth-focused Medical device stocks which are fundamentally strong.

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