4 Medical Device Stocks With Solid Potential To Buy Now

The United States boasts being the biggest MedTech market to date and is highly regarded for its innovation and technologically-advanced products across the world. A Kaloroma Information article validates the country’s dominance in the field, thanks to its more than $180 billion in revenues generated from all over the world.

Medical Device Tax Suspension

The medical device industry is booming with possibilities, courtesy of the two-year suspension of the infamous 2.3% Medical Device tax. The lifting of the tax makes scope for solid research and development (R&D), which is likely to benefit companies in the long run.

The 2.3% excise tax was implemented in 2013 under Obamacare, significantly affecting R&D. Per the Advanced Medical Technology Association lobbying group, this tax impaired medical innovation to a great extent, resulting in loss or lower job creation.

To address the problems, the Senate placed a temporary suspension on these taxes in the January 2016-December 2017 period.

The taxes were imposed again on Jan 1, 2018, only to be suspended on Jan 22 for another two years. The device tax suspension is one of the very few amendments to see a landslide bipartisan win in the House.

Since Jan. 22, the Medical Products industry has rallied 2.2%, significantly outperforming the S&P 500 index’s decline of 4% on account of political, cultural and legal troubles plaguing the markets worldwide.

Making the Right Picks

Against this backdrop, a few medical device stocks are well positioned on strong fundamentals and solid R&D prospects. We have used the Zacks Stock Screener to pick such stocks. We have also taken care to include stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) along with a Growth Score of A or B. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 or 2 are better picks than most.

Intuitive Surgical, Inc. ISRG has a Growth Score of B.

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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