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4 Large Cap MedTech Stocks to Keep Winning Streaks Alive in 2021
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Throughout 2020, the coronavirus pandemic has been wreaking havoc on the global economy. This has been reflected through year-wide job layoffs, frequent slips of global stock indices and an overall gloom in market sentiment. Despite a temporary phase of market rebound on the back of stimulus packages, the imminence of a renewed lockdown due to the resurgence of coronavirus cases has kept investor optimism muted. Uncertainty in the delivery of vaccine has been adding to the plight.
Per a Business Today report, the IMF projects a global GDP contraction of 4.4% for 2020 in its latest World Economic Outlook.
A Glimpse into MedTech Space
In the initial months of the pandemic, MedTech was one of the worst-affected industries, owing to the closure of global supply and manufacturing chains, and the deferral of elective medical/surgical procedures. However, as the year progressed, several MedTech players started picking up momentum on account of several positive developments. These have been mostly regulatory clearances, the launch of a plethora of COVID-diagnostic tests and widespread consumer adoption of digital healthcare options. For instance, remote monitoring technologies and digital diabetes treatment options have found a solid customer base amid the pandemic. The expansion of the non-COVID product portfolio has also driven growth for several companies lately.
Investor optimism has been steadily surging on major MedTech stocks like Abbott Laboratories (ABT - Free Report) and ABIOMED , as these companies registered a significant sequential uptick in their third-quarter 2020 performances.
Although there has been a resurgence of COVID-19 cases over the past couple of months, and vaccine rollout-related visibility is still unclear, this uptrend within MedTech is most likely to continue in 2021 based on the evolving business models of the majority of the industry players, who have become well-accustomed with the latest transformations in the economy.
4 Stocks to Bet On:
The following are a few large-cap MedTech companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy), which currently offer the best upside potential. These stocks are also witnessing strong year-to-date upward trends in share prices along with favorable 2021 growth parameters.
Align Technology (ALGN - Free Report) : In October 2020, this Zacks Rank #2 company, with a $41.53-billion market cap, launched the Invisalign G8 with SmartForce Aligner Activation, the latest of its biomechanics innovations. In the same month, the company commercially launched its previously announced proprietary ClinCheck treatment planning software, which provides doctors with a 3D model of planned tooth movements through Invisalign treatment.
Year to date, it has surged 88.8%. For 2021, its revenues are expected to grow 32.4%, whereas EPS is expected to grow 75.2%.
Hologic (HOLX - Free Report) : In December 2020, this Zacks Rank #1 company, with an $19.30-billion market cap, announced the commercial availability of its Genius AI Detection technology post its FDA approval. Notably, the Genius AI Detection software is the only 3D computer-aided detection (“CAD”) solution that supports Hologic’s other tomosynthesis imaging technology (Clarity HD and 3DQuorum imaging) along with standard-resolution tomosynthesis. With the latest commercial availability, Hologic aims to strengthen its foothold in the global Mammography Solutions market.
Year to date, it has gained 43.9%. For fiscal 2021, revenues are expected to grow 38.2%, whereas EPS is expected to grow 76.9%.
IDEXX Laboratories (IDXX - Free Report) : In August 2020, this Zacks Rank #2 company,with a market cap of $40.76 billion, launched the ProCyte One Hematology Analyzer. The new analyzer’s advanced technology offers path-breaking workflow simplicity, and consistent and precise results at the point of care. The ProCyte One Hematology Analyzer has a global rollout planned for early 2021. The company expects to start shipping in volume in the first quarter of 2021.
Year to date, it has surged 83%. For 2021, the company’s revenues are expected to grow 11.4%, whereas EPS is expected to grow 11.4%.
Intuitive Surgical (ISRG - Free Report) : This Zacks Rank #2 company’s robot-based da Vinci surgical system enables minimally-invasive surgery that reduces the trauma associated with open surgery. Despite tough procedural volume scenario,in third-quarter 2020, da Vinci procedures grew 7% globally from the prior-year quarter and also increased 36% on a sequential basis. On an overall basis, the recovery of procedures happened gradually during the third quarter and reached approximately 90% of pre-COVID-19 levels by the end of the third quarter. Moreover, Intuitive Surgical placed 5865 da Vinci surgical systems in the third quarter, with the installed base growing 8% year over year. The company currently has a market cap of $ 91.67 billion.
Year to date, it has gained 31.9%. For 2021, revenues are expected to grow 16.5%, whereas EPS is expected to grow 34.8%.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021?
These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold.
Image: Bigstock
4 Large Cap MedTech Stocks to Keep Winning Streaks Alive in 2021
Throughout 2020, the coronavirus pandemic has been wreaking havoc on the global economy. This has been reflected through year-wide job layoffs, frequent slips of global stock indices and an overall gloom in market sentiment. Despite a temporary phase of market rebound on the back of stimulus packages, the imminence of a renewed lockdown due to the resurgence of coronavirus cases has kept investor optimism muted. Uncertainty in the delivery of vaccine has been adding to the plight.
Per a Business Today report, the IMF projects a global GDP contraction of 4.4% for 2020 in its latest World Economic Outlook.
A Glimpse into MedTech Space
In the initial months of the pandemic, MedTech was one of the worst-affected industries, owing to the closure of global supply and manufacturing chains, and the deferral of elective medical/surgical procedures. However, as the year progressed, several MedTech players started picking up momentum on account of several positive developments. These have been mostly regulatory clearances, the launch of a plethora of COVID-diagnostic tests and widespread consumer adoption of digital healthcare options. For instance, remote monitoring technologies and digital diabetes treatment options have found a solid customer base amid the pandemic. The expansion of the non-COVID product portfolio has also driven growth for several companies lately.
Investor optimism has been steadily surging on major MedTech stocks like Abbott Laboratories (ABT - Free Report) and ABIOMED , as these companies registered a significant sequential uptick in their third-quarter 2020 performances.
Although there has been a resurgence of COVID-19 cases over the past couple of months, and vaccine rollout-related visibility is still unclear, this uptrend within MedTech is most likely to continue in 2021 based on the evolving business models of the majority of the industry players, who have become well-accustomed with the latest transformations in the economy.
4 Stocks to Bet On:
The following are a few large-cap MedTech companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy), which currently offer the best upside potential. These stocks are also witnessing strong year-to-date upward trends in share prices along with favorable 2021 growth parameters.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology (ALGN - Free Report) : In October 2020, this Zacks Rank #2 company, with a $41.53-billion market cap, launched the Invisalign G8 with SmartForce Aligner Activation, the latest of its biomechanics innovations. In the same month, the company commercially launched its previously announced proprietary ClinCheck treatment planning software, which provides doctors with a 3D model of planned tooth movements through Invisalign treatment.
Year to date, it has surged 88.8%. For 2021, its revenues are expected to grow 32.4%, whereas EPS is expected to grow 75.2%.
Hologic (HOLX - Free Report) : In December 2020, this Zacks Rank #1 company, with an $19.30-billion market cap, announced the commercial availability of its Genius AI Detection technology post its FDA approval. Notably, the Genius AI Detection software is the only 3D computer-aided detection (“CAD”) solution that supports Hologic’s other tomosynthesis imaging technology (Clarity HD and 3DQuorum imaging) along with standard-resolution tomosynthesis. With the latest commercial availability, Hologic aims to strengthen its foothold in the global Mammography Solutions market.
Year to date, it has gained 43.9%. For fiscal 2021, revenues are expected to grow 38.2%, whereas EPS is expected to grow 76.9%.
IDEXX Laboratories (IDXX - Free Report) : In August 2020, this Zacks Rank #2 company,with a market cap of $40.76 billion, launched the ProCyte One Hematology Analyzer. The new analyzer’s advanced technology offers path-breaking workflow simplicity, and consistent and precise results at the point of care. The ProCyte One Hematology Analyzer has a global rollout planned for early 2021. The company expects to start shipping in volume in the first quarter of 2021.
Year to date, it has surged 83%. For 2021, the company’s revenues are expected to grow 11.4%, whereas EPS is expected to grow 11.4%.
Intuitive Surgical (ISRG - Free Report) : This Zacks Rank #2 company’s robot-based da Vinci surgical system enables minimally-invasive surgery that reduces the trauma associated with open surgery. Despite tough procedural volume scenario,in third-quarter 2020, da Vinci procedures grew 7% globally from the prior-year quarter and also increased 36% on a sequential basis. On an overall basis, the recovery of procedures happened gradually during the third quarter and reached approximately 90% of pre-COVID-19 levels by the end of the third quarter. Moreover, Intuitive Surgical placed 5865 da Vinci surgical systems in the third quarter, with the installed base growing 8% year over year. The company currently has a market cap of $ 91.67 billion.
Year to date, it has gained 31.9%. For 2021, revenues are expected to grow 16.5%, whereas EPS is expected to grow 34.8%.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021?
These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold.
Start Your Access to the New Zacks Top 10 Stocks >>