On January 10, we upgraded blood management solutions, Haemonetics Corporation ( HAE - Analyst Report ) to Outperform based on its huge growth prospects. Haemonetics, which recently entered the 1.2 billion whole blood collection market, became a Zacks Rank #1 (Strong Buy) stock, shortly after its update on Key growth initiatives at J.P. Morgan Health Care Conference on January 9.

Why the Upgrade?

Haemonetics Corporation has projected fiscal 2013 as a landmark year based on several key growth factors including the $551 million acquisition of transfusion medicine business of Pall Corporation (PLL), the largest acquisition in the company’s history. The acquisition has allowed Haemonetics to enter the whole blood collection market, which is growing at a fast pace with nearly 60 million red blood cells collection procedures performed annually worldwide. The entryinto the whole blood market precedes the planned launch of the company’s automated whole blood product, beginning later this fiscal year.

We are also optimistic about the expected limited market release of the paperless phlebotomy offering at the end of the fourth quarter of fiscal 2013. Further, Haemonetics believes that the emerging markets are a key focus area for future growth of the company. The company is currently investing more in this market, especially in China, as over the next five years business from China is slated for a CAGR (compound annual growth rate) of 20%−25% driven by sales from platelets, cell salvage ("Cell Saver Elite") and thromboelastography (“TEG”).

In addition, over the past 60 hays, all the analysts covering the stock have raised their estimates for fiscal 2013.

Other Stocks Worth a Look

Apart from Haemonetics, other stocks in the MedTech sector that are currently performing well include Spherix Inc. ( SPEX ) and SurModics Inc. ( SRDX - Analyst Report ) . All these companies carry a Zacks Rank #1 (Strong Buy).