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3 Medical Service Industry Stocks Thriving Amid Workforce Challenges
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The Medical Services sector is undergoing a rapid change as digital health expands, value-based care gains traction, and patient-centric and precision medicine solutions draw increasing attention. Demand for remote treatment continues to accelerate growth in telemedicine and AI-powered analytics, with providers using these tools to improve diagnostics, streamline operations and deliver more personalized, preventive care. According to Mordor Intelligence, the healthcare analytics market was valued at $57.16 billion in 2025 and is projected to expand at a CAGR of 22.5% through 2031, offering a tailwind for payers, providers and analytics vendors. Healthcare analytics software and services can be used to analyze current and historical industry data to predict trends and improve the overall management of conditions among the population. Companies like BrightSpring Health Services (BTSG - Free Report) , Biodesix, Inc. (BDSX - Free Report) and HealthEquity, Inc. (HQY - Free Report) appear well-positioned to benefit from these trends.
At the same time, workforce shortages continue to strain traditional, labor-intensive care settings. A CWS Health post notes that what began as a pandemic-driven burnout has given way to a persistent workforce imbalance, affecting nearly every area of care delivery — from bedside nursing and specialty physicians to allied health professionals and support staff. This strain is forcing healthcare leaders around the world to navigate trade-offs among access, quality, cost and staff well-being.
Industry Description
The Zacks Medical Services industry comprises third-party service providers and caregivers appointed by core healthcare companies for economies of scale. The industry includes pharmacy benefit managers, contract research organizations, wireless MedTech companies, third-party testing labs, surgical facility providers and healthcare workforce solution providers, among others. Over the years, this industry has strategically moved from volume-based to value-based care. The resurgence in medical tourism is further boosting the sector. This changing pattern of care calls for advanced facilities, increasing the need to appoint specialized external service providers. With the growing importance of effective healthcare management, the medical service industry has become an integral part of the modern healthcare system.
3 Trends Shaping the Future of the Medical Services Industry
Digital Revolution: The adoption of digital platforms within the medical device space is gaining prominence in the United States. According to the Precedence Research report, the global digital health market is valued at $421 billion in 2025 and is projected to expand at a CAGR of 10.8% through 2035. The increasing availability of unstructured health data, advanced analytics and the demand for personalized medical services underscore the growing importance of big data in healthcare. The “Big Data in Healthcare” market continues to witness strong forecasts. According to Market Research Future analysis, the Big Data in Healthcare market is forecasted to witness a CAGR of 14.4% through 2025-2035, from a $85.9 billion valuation in 2024. A major market trend is the rising adoption of cloud-based analytical tools that facilitate real-time data sharing across global medical networks, while the integration of artificial intelligence (AI) and machine learning into healthcare analytics is also becoming more prevalent.
Healthcare Staffing Shortage to Continue: It has been more than five years since the pandemic ended, but the pressure it placed on the global health workforce continues to linger. Many frontline professionals exited the field or reduced hours amid burnout and fatigue, while the aging population and rising rates of chronic diseases have intensified the demand for care. The World Health Organization projects a shortfall of 11 million physicians by 2030, mostly in low and lower-middle-income countries. According to the McKinsey Health Institute analysis, closing this shortage could avert 189 million years of life lost to early death and lived with disability, equivalent to 7% of all disease burden. It could also deliver a $1.1-trillion boost to the global economy, roughly matching the GDP of Switzerland. Needless to say, this supply shortage has led to a significant rise in healthcare wages. In a report, the American Hospital Association stated that workforce costs rose 5.6% as hospitals increased wages to recruit and retain nurses, physicians and other staff. With many hospitals operating on margins that are just above breakeven, even modest increases in labor costs are difficult to manage.
Revival in Nursing Care Market: According to Coherent Market Insights, the Nursing Care Services market is projected to expand at a CAGR of 9.4% from an estimated $180.73 billion in 2026 to 2033. Therole of nurses continues to evolve alongside advancements in medical technologies and shifts in healthcare delivery models. Telehealth and remote patient monitoring have expanded nurses' reach beyond traditional hospital settings, extending care in rural or underserved areas. Meanwhile, growing patient complexity is driving demand for specialized nursing roles, such as nurse practitioners (NPs), critical care specialists and geriatric nurses. According to August 2025 Bureau of Labor Statistics data, NPs rank among the top five fastest-growing occupations in the United States over the next decade. The employment of nurse anesthetists, nurse midwives and NPs is expected to rise 35% between 2024 and 2034, with 32,700 openings forecast annually over the period.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Medical Services industry falls within the broader Zacks Medical sector. It carries a Zacks Industry Rank #109, which places it in the top 44% of 246 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates robust near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
We will present a few stocks that have the potential to outperform the market based on a strong earnings outlook. But it is worth taking a look at the industry’s shareholder returns and current valuation first.
Industry Underperforms Sector & S&P 500
The Medical Services Industry has lagged its sector and the S&P 500 over the past year. The stocks in this industry have collectively gained 0.3% compared with the Medical sector’s 4.1% growth. The S&P 500 composite has risen 26.7% in the same period.
1-Year Price Performance
Image Source: Zacks Investment Research
Industry's Current Valuation
On the basis of forward 12-month price-to-earnings (P/E), which is commonly used for valuing medical stocks, the industry is currently trading at 14.86X compared with the S&P 500’s 21.48X and the sector’s 20.06X.
Over the last five years, the industry has traded as high as 18.78X, as low as 13.22X and at the median of 15.24X, as the charts below show.
Price-to-Earnings Forward 12 Months (F12M)
Image Source: Zacks Investment Research
Price-to-Earnings Forward 12 Months (F12M)
Image Source: Zacks Investment Research
3 Stocks to Buy Right Now
Below, we present three stocks from the Medical Services industry that have been witnessing positive earnings estimate revisions.
BrightSpring: Based in Louisville, KY, BrightSpring Health Services is one of the largest independent providers of home and community-based health services in the United States, delivering both pharmacy and provider services. The company mainly provides services in patient-preferred and lower-cost settings, often over longer durations, given the chronic nature of the patient conditions it addresses. In the first quarter of 2026, BrightSpring’s net revenues increased 25.6% year over year.
Presently, BrightSpring sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate calls for the company’s 2026 earnings to surge 67% on a revenue growth rate of 16.6%.
Biodesix: Louisville, CO-based Biodesix offers lung diagnostic testing services to healthcare providers as well as diagnostic testing services and consulting to biopharmaceutical, life sciences and diagnostic companies. With five diagnostic tests launched and several more in development, the company’s blood-based solutions portfolio addresses clinical unmet needs within diagnosis, treatment and monitoring of lung cancer. In the first quarter of 2026, Biodesix delivered 42% year-over-year revenue growth.
Biodesix carries a Zacks Rank #2 (Buy) at present. The Zacks Consensus Estimate projects the company’s 2026 earnings to increase 35.9% year over year on a revenue growth rate of 25.5%.
Price & Consensus: BDSX
Image Source: Zacks Investment Research
HealthEquity: Utah-based HealthEquity administers health savings accounts (HSAs) and complementary consumer-directed benefits. The company’s growth model is built on two reinforcing drivers — growth in member accounts and their HSA Assets over time, and expansion in the lifetime value of each member relationship as engagement and activity increase. In the first quarter of fiscal 2027, HealthEquity’s revenues increased 7% from the prior-year levels.
HealthEquity presently carries a Zacks Rank #2. The Zacks Consensus Estimate for the company’s fiscal 2027 earnings indicates a 17.3% year-over-year jump on revenue growth of 7.7%.
Price & Consensus: HQY
Image Source: Zacks Investment Research
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3 Medical Service Industry Stocks Thriving Amid Workforce Challenges
The Medical Services sector is undergoing a rapid change as digital health expands, value-based care gains traction, and patient-centric and precision medicine solutions draw increasing attention. Demand for remote treatment continues to accelerate growth in telemedicine and AI-powered analytics, with providers using these tools to improve diagnostics, streamline operations and deliver more personalized, preventive care. According to Mordor Intelligence, the healthcare analytics market was valued at $57.16 billion in 2025 and is projected to expand at a CAGR of 22.5% through 2031, offering a tailwind for payers, providers and analytics vendors. Healthcare analytics software and services can be used to analyze current and historical industry data to predict trends and improve the overall management of conditions among the population. Companies like BrightSpring Health Services (BTSG - Free Report) , Biodesix, Inc. (BDSX - Free Report) and HealthEquity, Inc. (HQY - Free Report) appear well-positioned to benefit from these trends.
At the same time, workforce shortages continue to strain traditional, labor-intensive care settings. A CWS Health post notes that what began as a pandemic-driven burnout has given way to a persistent workforce imbalance, affecting nearly every area of care delivery — from bedside nursing and specialty physicians to allied health professionals and support staff. This strain is forcing healthcare leaders around the world to navigate trade-offs among access, quality, cost and staff well-being.
Industry Description
The Zacks Medical Services industry comprises third-party service providers and caregivers appointed by core healthcare companies for economies of scale. The industry includes pharmacy benefit managers, contract research organizations, wireless MedTech companies, third-party testing labs, surgical facility providers and healthcare workforce solution providers, among others. Over the years, this industry has strategically moved from volume-based to value-based care. The resurgence in medical tourism is further boosting the sector. This changing pattern of care calls for advanced facilities, increasing the need to appoint specialized external service providers. With the growing importance of effective healthcare management, the medical service industry has become an integral part of the modern healthcare system.
3 Trends Shaping the Future of the Medical Services Industry
Digital Revolution: The adoption of digital platforms within the medical device space is gaining prominence in the United States. According to the Precedence Research report, the global digital health market is valued at $421 billion in 2025 and is projected to expand at a CAGR of 10.8% through 2035. The increasing availability of unstructured health data, advanced analytics and the demand for personalized medical services underscore the growing importance of big data in healthcare. The “Big Data in Healthcare” market continues to witness strong forecasts. According to Market Research Future analysis, the Big Data in Healthcare market is forecasted to witness a CAGR of 14.4% through 2025-2035, from a $85.9 billion valuation in 2024. A major market trend is the rising adoption of cloud-based analytical tools that facilitate real-time data sharing across global medical networks, while the integration of artificial intelligence (AI) and machine learning into healthcare analytics is also becoming more prevalent.
Healthcare Staffing Shortage to Continue: It has been more than five years since the pandemic ended, but the pressure it placed on the global health workforce continues to linger. Many frontline professionals exited the field or reduced hours amid burnout and fatigue, while the aging population and rising rates of chronic diseases have intensified the demand for care. The World Health Organization projects a shortfall of 11 million physicians by 2030, mostly in low and lower-middle-income countries. According to the McKinsey Health Institute analysis, closing this shortage could avert 189 million years of life lost to early death and lived with disability, equivalent to 7% of all disease burden. It could also deliver a $1.1-trillion boost to the global economy, roughly matching the GDP of Switzerland. Needless to say, this supply shortage has led to a significant rise in healthcare wages. In a report, the American Hospital Association stated that workforce costs rose 5.6% as hospitals increased wages to recruit and retain nurses, physicians and other staff. With many hospitals operating on margins that are just above breakeven, even modest increases in labor costs are difficult to manage.
Revival in Nursing Care Market: According to Coherent Market Insights, the Nursing Care Services market is projected to expand at a CAGR of 9.4% from an estimated $180.73 billion in 2026 to 2033. Therole of nurses continues to evolve alongside advancements in medical technologies and shifts in healthcare delivery models. Telehealth and remote patient monitoring have expanded nurses' reach beyond traditional hospital settings, extending care in rural or underserved areas. Meanwhile, growing patient complexity is driving demand for specialized nursing roles, such as nurse practitioners (NPs), critical care specialists and geriatric nurses. According to August 2025 Bureau of Labor Statistics data, NPs rank among the top five fastest-growing occupations in the United States over the next decade. The employment of nurse anesthetists, nurse midwives and NPs is expected to rise 35% between 2024 and 2034, with 32,700 openings forecast annually over the period.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Medical Services industry falls within the broader Zacks Medical sector. It carries a Zacks Industry Rank #109, which places it in the top 44% of 246 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates robust near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
We will present a few stocks that have the potential to outperform the market based on a strong earnings outlook. But it is worth taking a look at the industry’s shareholder returns and current valuation first.
Industry Underperforms Sector & S&P 500
The Medical Services Industry has lagged its sector and the S&P 500 over the past year. The stocks in this industry have collectively gained 0.3% compared with the Medical sector’s 4.1% growth. The S&P 500 composite has risen 26.7% in the same period.
1-Year Price Performance
Image Source: Zacks Investment Research
Industry's Current Valuation
On the basis of forward 12-month price-to-earnings (P/E), which is commonly used for valuing medical stocks, the industry is currently trading at 14.86X compared with the S&P 500’s 21.48X and the sector’s 20.06X.
Over the last five years, the industry has traded as high as 18.78X, as low as 13.22X and at the median of 15.24X, as the charts below show.
Price-to-Earnings Forward 12 Months (F12M)
Image Source: Zacks Investment Research
Price-to-Earnings Forward 12 Months (F12M)
Image Source: Zacks Investment Research
3 Stocks to Buy Right Now
Below, we present three stocks from the Medical Services industry that have been witnessing positive earnings estimate revisions.
BrightSpring: Based in Louisville, KY, BrightSpring Health Services is one of the largest independent providers of home and community-based health services in the United States, delivering both pharmacy and provider services. The company mainly provides services in patient-preferred and lower-cost settings, often over longer durations, given the chronic nature of the patient conditions it addresses. In the first quarter of 2026, BrightSpring’s net revenues increased 25.6% year over year.
Presently, BrightSpring sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate calls for the company’s 2026 earnings to surge 67% on a revenue growth rate of 16.6%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Price & Consensus: BTSG
Image Source: Zacks Investment Research
Biodesix: Louisville, CO-based Biodesix offers lung diagnostic testing services to healthcare providers as well as diagnostic testing services and consulting to biopharmaceutical, life sciences and diagnostic companies. With five diagnostic tests launched and several more in development, the company’s blood-based solutions portfolio addresses clinical unmet needs within diagnosis, treatment and monitoring of lung cancer. In the first quarter of 2026, Biodesix delivered 42% year-over-year revenue growth.
Biodesix carries a Zacks Rank #2 (Buy) at present. The Zacks Consensus Estimate projects the company’s 2026 earnings to increase 35.9% year over year on a revenue growth rate of 25.5%.
Price & Consensus: BDSX
Image Source: Zacks Investment Research
HealthEquity: Utah-based HealthEquity administers health savings accounts (HSAs) and complementary consumer-directed benefits. The company’s growth model is built on two reinforcing drivers — growth in member accounts and their HSA Assets over time, and expansion in the lifetime value of each member relationship as engagement and activity increase. In the first quarter of fiscal 2027, HealthEquity’s revenues increased 7% from the prior-year levels.
HealthEquity presently carries a Zacks Rank #2. The Zacks Consensus Estimate for the company’s fiscal 2027 earnings indicates a 17.3% year-over-year jump on revenue growth of 7.7%.
Price & Consensus: HQY
Image Source: Zacks Investment Research