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3 Medical Info Systems Stocks to Gain From GenAI Boom Amid Cyber Risk
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The Medical Information Systems industry continues to expand, supported by rapid digitization across global healthcare ecosystems and sustained investment in data-driven care delivery. Innovations in healthcare resource management, patient data integration and interoperable platforms remain central, with machine learning and artificial intelligence (AI) increasingly integrated into electronic health records (EHRs), diagnostics and workflow automation. For instance, Oracle yesterday announced a new 100% agentic AI healthcare management and EHR system for hospitals and clinics. The system uses specialized AI agents across medical specialties, including general medicine, oncology and radiology, to assist healthcare professionals with diagnosis and treatment.
Industry growth remains robust. According to Markets and Markets, the AI in healthcare market is projected to witness a 39.7% CAGR through 2031, driven by growing demand for automation, increasing clinical complexity and substantial investment in predictive analytics, imaging AI and GenAI. Recent updates from industry bodies indicate continued prioritization of digital transformation, particularly around AI copilots for clinicians, ambient documentation tools and predictive analytics.
At the same time, regulatory scrutiny around AI governance, data privacy and model transparency has intensified in 2026, shaping deployment strategies. Cybersecurity also remains a critical concern as healthcare organizations face rising threats to cloud-based infrastructure.
Against this backdrop, companies like Inspire Medical Systems (INSP - Free Report) , American Well (AMWL - Free Report) and Butterfly Network (BFLY - Free Report) are well positioned to benefit from sustained demand for digital health, cloud-enabled platforms and AI-powered solutions, despite ongoing risks tied to system reliability and data security.
Industry Description
The Zacks Medical Info Systems industry comprises companies that develop and market healthcare information systems. These companies offer software and hardware solutions that provide healthcare providers with secure, real-time access to clinical, administrative and financial data, enabling more efficient decision-making. Focus on patient satisfaction, security of patient data and administrative cost control has increased the need for big data, 3D printing, blockchain and AI. Industry players like Omnicell and Allscripts generate millions of dollars from the sale of software and related hardware, professional services, IT outsourcing, and recurring software maintenance and transaction processing services.
3 Trends Shaping the Future of the Medical Information Industry
Growing Demand for Remote Healthcare: Remote patient monitoring (PRM) continues to expand rapidly, supported by the rising adoption of wearable devices, connected sensors and telehealth platforms. The key driver is the growing recognition of continuous monitoring in improving outcomes, particularly for chronic disease management and post-acute care. This shift has increasingly led to the utilization of value-based care models, helping reduce hospitalizations and overall costs while improving patient engagement.
Health tech solutions are advancing diagnostics and streamlining hospital workflows through robotics, AI-powered virtual assistants and automated triage systems. Generative AI-enabled tools are also being deployed for real-time documentation and care coordination. According to Mordor Intelligence, the global Smart Healthcare Products market was valued at $223.98 billion in 2025 and is projected to reach $425.18 billion by 2031, reflecting a CAGR of 11.27%, highlighting sustained demand for connected, data-driven care solutions.
AI and Health: The medical sector remains a leading adopter of AI, with use cases expanding across drug discovery, diagnostics, clinical workflows and patient care. In 2026, the focus has shifted from experimentation to scaled deployment, particularly in high-ROI areas such as clinical documentation, imaging analysis and decision support. Generative AI, especially ambient clinical assistants, is being increasingly integrated into electronic health records to automate documentation. The focus is also shifting toward AI agents that can access EHR data and perform multiple tasks within clinical workflows, although real-world validation remains limited. AI models are also advancing multimodal data integration, combining imaging, genomics and real-world data to improve diagnostic accuracy and personalize treatment pathways. In diagnostics, deep learning tools continue to enhance detection across radiology and pathology, while predictive analytics enables earlier intervention for high-risk patients. At the same time, stricter regulatory oversight around AI safety, transparency and bias is shaping adoption strategies.
Rising Instances of Cyber Attacks: As healthcare systems become more digital and interconnected, cybersecurity risks continue to intensify in 2026. The sector remains the top target for cybercrime, with the Federal Bureau of Investigation reporting 642 cyber incidents in healthcare in 2025, including 460 ransomware attacks. Ransomware and large-scale breaches are becoming more disruptive, with incidents increasingly targeting service providers and supply chains, amplifying system-wide impact. While the total number of breaches has slightly moderated, the scale and severity per attack have increased, with tens of millions of records exposed in 2025 alone (The HIPAA Journal). High-profile incidents, including major vendor breaches and hospital shutdowns, highlight operational vulnerabilities and risks to patient care.
Zacks Industry Rank
The Zacks Medical Info Systems industry falls within the broader Zacks Medical sector. It carries a Zacks Industry Rank #75, which places it in the top 30% of 248 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright 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 2 to 1.
We will present a few stocks with the potential to outperform the market based on a strong earnings outlook. However, it’s worth considering the industry’s shareholder returns and current valuation first.
Industry Underperforms S&P 500 and Sector
The industry has underperformed the Zacks S&P 500 as well as the sector over the past year.
The industry has lost 16% over the past year against the Zacks Medical sector and S&P 500’s rise of 6.6% and 16.8%, respectively.
One Year Price Performance
Image Source: Zacks Investment Research
Industry's Current Valuation
On the basis of forward 12-month price-to-sales (P/S), which is commonly used for valuing medical stocks, the industry is currently trading at 5.76X compared with the S&P 500’s 4.67X and the sector’s 2.24X.
Over the past five years, the industry has traded as high as 11.63X, as low as 3.29X and at the median of 5.87X, as the charts below show.
Price-to-Sales Forward Twelve Months (F12M)
Image Source: Zacks Investment Research
Price-to-Sales Forward Twelve Months (F12M)
Image Source: Zacks Investment Research
3 Medical Info Systems Stocks to Bet On
Inspire Medical System is positioning itself for long-term growth by expanding the adoption of Inspire therapy for patients with moderate to severe obstructive sleep apnea (OSA). The company is strengthening adoption through clinical evidence, reimbursement support, patient engagement and R&D investments, while the next-generation Inspire V system is helping improve the product mix and gross margin.
Inspire Medical currently sports a Zacks Rank #1 (Strong Buy). The company has an earnings yield of 1.9% against the industry’s negative 2.1% yield.
American Well is positioning itself as a unified infrastructure platform for technology-enabled and AI-powered care, helping government, payers and health systems simplify access to multiple clinical programs through a single platform. Subscription revenues now account for more than half of total revenues, providing a recurring and more predictable revenue base, while the company is seeing strong renewals and a growing pipeline across commercial and government customers.
American Well currently carries a Zacks Rank #2 (Buy). The company’s 2026 estimated earnings growth rate of 52.7% is well ahead of the industry’s 15.3% rise.
Price & Consensus: AMWL
Image Source: Zacks Investment Research
Butterfly Network’s core Point-of-Care Ultrasound (“POCUS”) business remains the foundational pillar for its growth, anchored by its revolutionary Ultrasound-on-Chip technology. Another key area of focus is the company’s rapidly expanding software and artificial intelligence ecosystem. Compass AI wins, software contract value growth, enterprise customer adoption and the pace of AI commercialization represents an increasingly important recurring revenue opportunity for the company beyond hardware sales.
Butterfly Network currently holds a Zacks Rank #2. The company’s 2026 estimated earnings growth rate of 25% is well ahead of the industry’s 15.3% rise.
View the Zacks #1 Rank List
Image: Bigstock
3 Medical Info Systems Stocks to Gain From GenAI Boom Amid Cyber Risk
The Medical Information Systems industry continues to expand, supported by rapid digitization across global healthcare ecosystems and sustained investment in data-driven care delivery. Innovations in healthcare resource management, patient data integration and interoperable platforms remain central, with machine learning and artificial intelligence (AI) increasingly integrated into electronic health records (EHRs), diagnostics and workflow automation. For instance, Oracle yesterday announced a new 100% agentic AI healthcare management and EHR system for hospitals and clinics. The system uses specialized AI agents across medical specialties, including general medicine, oncology and radiology, to assist healthcare professionals with diagnosis and treatment.
Industry growth remains robust. According to Markets and Markets, the AI in healthcare market is projected to witness a 39.7% CAGR through 2031, driven by growing demand for automation, increasing clinical complexity and substantial investment in predictive analytics, imaging AI and GenAI. Recent updates from industry bodies indicate continued prioritization of digital transformation, particularly around AI copilots for clinicians, ambient documentation tools and predictive analytics.
At the same time, regulatory scrutiny around AI governance, data privacy and model transparency has intensified in 2026, shaping deployment strategies. Cybersecurity also remains a critical concern as healthcare organizations face rising threats to cloud-based infrastructure.
Against this backdrop, companies like Inspire Medical Systems (INSP - Free Report) , American Well (AMWL - Free Report) and Butterfly Network (BFLY - Free Report) are well positioned to benefit from sustained demand for digital health, cloud-enabled platforms and AI-powered solutions, despite ongoing risks tied to system reliability and data security.
Industry Description
The Zacks Medical Info Systems industry comprises companies that develop and market healthcare information systems. These companies offer software and hardware solutions that provide healthcare providers with secure, real-time access to clinical, administrative and financial data, enabling more efficient decision-making. Focus on patient satisfaction, security of patient data and administrative cost control has increased the need for big data, 3D printing, blockchain and AI. Industry players like Omnicell and Allscripts generate millions of dollars from the sale of software and related hardware, professional services, IT outsourcing, and recurring software maintenance and transaction processing services.
3 Trends Shaping the Future of the Medical Information Industry
Growing Demand for Remote Healthcare: Remote patient monitoring (PRM) continues to expand rapidly, supported by the rising adoption of wearable devices, connected sensors and telehealth platforms. The key driver is the growing recognition of continuous monitoring in improving outcomes, particularly for chronic disease management and post-acute care. This shift has increasingly led to the utilization of value-based care models, helping reduce hospitalizations and overall costs while improving patient engagement.
Health tech solutions are advancing diagnostics and streamlining hospital workflows through robotics, AI-powered virtual assistants and automated triage systems. Generative AI-enabled tools are also being deployed for real-time documentation and care coordination. According to Mordor Intelligence, the global Smart Healthcare Products market was valued at $223.98 billion in 2025 and is projected to reach $425.18 billion by 2031, reflecting a CAGR of 11.27%, highlighting sustained demand for connected, data-driven care solutions.
AI and Health: The medical sector remains a leading adopter of AI, with use cases expanding across drug discovery, diagnostics, clinical workflows and patient care. In 2026, the focus has shifted from experimentation to scaled deployment, particularly in high-ROI areas such as clinical documentation, imaging analysis and decision support. Generative AI, especially ambient clinical assistants, is being increasingly integrated into electronic health records to automate documentation. The focus is also shifting toward AI agents that can access EHR data and perform multiple tasks within clinical workflows, although real-world validation remains limited. AI models are also advancing multimodal data integration, combining imaging, genomics and real-world data to improve diagnostic accuracy and personalize treatment pathways. In diagnostics, deep learning tools continue to enhance detection across radiology and pathology, while predictive analytics enables earlier intervention for high-risk patients. At the same time, stricter regulatory oversight around AI safety, transparency and bias is shaping adoption strategies.
Rising Instances of Cyber Attacks: As healthcare systems become more digital and interconnected, cybersecurity risks continue to intensify in 2026. The sector remains the top target for cybercrime, with the Federal Bureau of Investigation reporting 642 cyber incidents in healthcare in 2025, including 460 ransomware attacks. Ransomware and large-scale breaches are becoming more disruptive, with incidents increasingly targeting service providers and supply chains, amplifying system-wide impact. While the total number of breaches has slightly moderated, the scale and severity per attack have increased, with tens of millions of records exposed in 2025 alone (The HIPAA Journal). High-profile incidents, including major vendor breaches and hospital shutdowns, highlight operational vulnerabilities and risks to patient care.
Zacks Industry Rank
The Zacks Medical Info Systems industry falls within the broader Zacks Medical sector. It carries a Zacks Industry Rank #75, which places it in the top 30% of 248 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright 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 2 to 1.
We will present a few stocks with the potential to outperform the market based on a strong earnings outlook. However, it’s worth considering the industry’s shareholder returns and current valuation first.
Industry Underperforms S&P 500 and Sector
The industry has underperformed the Zacks S&P 500 as well as the sector over the past year.
The industry has lost 16% over the past year against the Zacks Medical sector and S&P 500’s rise of 6.6% and 16.8%, respectively.
One Year Price Performance
Image Source: Zacks Investment Research
Industry's Current Valuation
On the basis of forward 12-month price-to-sales (P/S), which is commonly used for valuing medical stocks, the industry is currently trading at 5.76X compared with the S&P 500’s 4.67X and the sector’s 2.24X.
Over the past five years, the industry has traded as high as 11.63X, as low as 3.29X and at the median of 5.87X, as the charts below show.
Price-to-Sales Forward Twelve Months (F12M)
Image Source: Zacks Investment Research
Price-to-Sales Forward Twelve Months (F12M)
Image Source: Zacks Investment Research
3 Medical Info Systems Stocks to Bet On
Inspire Medical System is positioning itself for long-term growth by expanding the adoption of Inspire therapy for patients with moderate to severe obstructive sleep apnea (OSA). The company is strengthening adoption through clinical evidence, reimbursement support, patient engagement and R&D investments, while the next-generation Inspire V system is helping improve the product mix and gross margin.
Inspire Medical currently sports a Zacks Rank #1 (Strong Buy). The company has an earnings yield of 1.9% against the industry’s negative 2.1% yield.
You can see the complete list of today's Zacks #1 Rank stocks here.
Price & Consensus: INSP
Image Source: Zacks Investment Research
American Well is positioning itself as a unified infrastructure platform for technology-enabled and AI-powered care, helping government, payers and health systems simplify access to multiple clinical programs through a single platform. Subscription revenues now account for more than half of total revenues, providing a recurring and more predictable revenue base, while the company is seeing strong renewals and a growing pipeline across commercial and government customers.
American Well currently carries a Zacks Rank #2 (Buy). The company’s 2026 estimated earnings growth rate of 52.7% is well ahead of the industry’s 15.3% rise.
Price & Consensus: AMWL
Image Source: Zacks Investment Research
Butterfly Network’s core Point-of-Care Ultrasound (“POCUS”) business remains the foundational pillar for its growth, anchored by its revolutionary Ultrasound-on-Chip technology. Another key area of focus is the company’s rapidly expanding software and artificial intelligence ecosystem. Compass AI wins, software contract value growth, enterprise customer adoption and the pace of AI commercialization represents an increasingly important recurring revenue opportunity for the company beyond hardware sales.
Butterfly Network currently holds a Zacks Rank #2. The company’s 2026 estimated earnings growth rate of 25% is well ahead of the industry’s 15.3% rise.
Price & Consensus: BFLY
Image Source: Zacks Investment Research