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Buy 3 MedTech Stocks That Are Outperforming S&P 500 in 2021
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The coronavirus pandemic continues to take a toll on the global economy. Drastic surge in unemployment rates, inconsistency of benchmark indices and dampened investor optimism persisted as the primary indicators of the economic upheaval throughout 2020.
Despite the mass rollout of vaccines, the situation has not changed much even in the initial months of 2021, thanks to the resurgence of a renewed wave of coronavirus cases in the United States and several European nations, emergence of new COVID strains and the possibility of a reimposed lockdown. In addition, the cloud of uncertainty over the efficacy of the recently introduced vaccines in combating the new mutants is aggravating the woes.
However, notwithstanding this pessimism across all industry domains, a World Bank report released in January 2021 stated that the global economy is projected to expand 4% in 2021, banking on a successful drive throughout the year.
Also on another upbeat note, the Fed projected 6.5% economic growth, on average, in 2021, reflecting a significant improvement from the December 2020 forecast of 4.2% rise. Unemployment rate is now estimated at 4.5% for 2021, representing a decline from the December projection of 5%.
MedTech Shows Brighter Prospects
It is encouraging to note that the MedTech sector started witnessing a steady rebound from the second half of 2020, courtesy of a number of positive developments. These are an array of COVID-19 diagnostic test launches and their regulatory approvals as well as the large-scale shift of consumer preferences toward digital healthcare options. A solid uptick in non-COVID product portfolio and emergency medical services also aided the sector’s recovery.
Per a CNBCTV18.comarticle, in March 2021, President Joe Biden signed into law the $1.9-trillion coronavirus stimulus bill. This relief package offers $400 billion for $1,400 direct payments to most Americans, $350 billion in aid of the state and local governments and an enhanced funding for the COVID-19 vaccine drive. The implementation of this new measure while ensuring acceleration in the pace of the coronavirus vaccine rollout and distribution is expected to leave a positive impact on the MedTech sector as well.
Stocks from the specific MedTech niches like digital diabetes, remote patient monitoring, diagnostics, telemedicine have been riding on solid prospects throughout the pandemic so far. Backed by a solid year-to date price outperformance of the S&P 500 Index, the following stocks are consistently delivering a stellar performance.
For instance, in December 2020, PerkinElmer introduced the CE marked EURORealTime SARS-CoV-2/Influenza A/B for the direct detection of SARS-CoV-2, influenza virus type A and type B.
3 Market-Beating MedTech Stocks
The following are the three MedTech stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) at present, which have been outperforming the market in 2021 to date.You can see the complete list of today’s Zacks #1 Rank stocks here.
HillRom Holdings, Inc. : In January 2021, this currently Zacks Rank #2 company inked a definitive deal to acquire Bardy Diagnostics, Inc., a provider of digital health and ambulatory cardiac monitoring technologies. This acquisition will boost HillRom with a highly innovative and unique diagnostic cardiology platform aligned with its vision of Advancing Connected Care. In February, this company announced the buyout of contact-free continuous monitoring technology from EarlySense.
Year to date, shares of the company have gained 12.8% compared with the S&P 500 Index’s rally of 5.7%.
Surmodics, Inc. (SRDX - Free Report) : In September 2020, this presently Zacks #2 Ranked player received an FDA 510(k) clearance for its Pounce Thrombus Retrieval System, which enables non-surgical removal of thrombi and emboli from the peripheral arterial vasculature. Notably, this approval will provide a boost to Surmodics’ Medical Devices segment. Last August, the company attained the FDA 510(k) clearance for its Sublime Radial Access 0.014 Rapid Exchange (RX) Percutaneous Transluminal Angioplasty (PTA) Dilatation Catheter.
Year to date, the stock has jumped 28.8% compared with the S&P 500 Index’s rally of 5.7%
Owens & Minor, Inc. (OMI - Free Report) :This currently Zacks #1 Ranked company continues to expand its production and invest in its capacity to equip frontline workers with procedure masks and N95 respirators. Since February 2020, the company has manufactured and provided surgical N95 respirators, surgical and procedure masks as well as face shields.
Year to date, shares of this company have surged 38.9% compared with the S&P 500 Index’s rally of 5.7%
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Bigstock
Buy 3 MedTech Stocks That Are Outperforming S&P 500 in 2021
The coronavirus pandemic continues to take a toll on the global economy. Drastic surge in unemployment rates, inconsistency of benchmark indices and dampened investor optimism persisted as the primary indicators of the economic upheaval throughout 2020.
Despite the mass rollout of vaccines, the situation has not changed much even in the initial months of 2021, thanks to the resurgence of a renewed wave of coronavirus cases in the United States and several European nations, emergence of new COVID strains and the possibility of a reimposed lockdown. In addition, the cloud of uncertainty over the efficacy of the recently introduced vaccines in combating the new mutants is aggravating the woes.
However, notwithstanding this pessimism across all industry domains, a World Bank report released in January 2021 stated that the global economy is projected to expand 4% in 2021, banking on a successful drive throughout the year.
Also on another upbeat note, the Fed projected 6.5% economic growth, on average, in 2021, reflecting a significant improvement from the December 2020 forecast of 4.2% rise. Unemployment rate is now estimated at 4.5% for 2021, representing a decline from the December projection of 5%.
MedTech Shows Brighter Prospects
It is encouraging to note that the MedTech sector started witnessing a steady rebound from the second half of 2020, courtesy of a number of positive developments. These are an array of COVID-19 diagnostic test launches and their regulatory approvals as well as the large-scale shift of consumer preferences toward digital healthcare options. A solid uptick in non-COVID product portfolio and emergency medical services also aided the sector’s recovery.
Per a CNBCTV18.com article, in March 2021, President Joe Biden signed into law the $1.9-trillion coronavirus stimulus bill. This relief package offers $400 billion for $1,400 direct payments to most Americans, $350 billion in aid of the state and local governments and an enhanced funding for the COVID-19 vaccine drive. The implementation of this new measure while ensuring acceleration in the pace of the coronavirus vaccine rollout and distribution is expected to leave a positive impact on the MedTech sector as well.
Stocks from the specific MedTech niches like digital diabetes, remote patient monitoring, diagnostics, telemedicine have been riding on solid prospects throughout the pandemic so far. Backed by a solid year-to date price outperformance of the S&P 500 Index, the following stocks are consistently delivering a stellar performance.
For instance, in December 2020, PerkinElmer introduced the CE marked EURORealTime SARS-CoV-2/Influenza A/B for the direct detection of SARS-CoV-2, influenza virus type A and type B.
3 Market-Beating MedTech Stocks
The following are the three MedTech stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) at present, which have been outperforming the market in 2021 to date.You can see the complete list of today’s Zacks #1 Rank stocks here.
HillRom Holdings, Inc. : In January 2021, this currently Zacks Rank #2 company inked a definitive deal to acquire Bardy Diagnostics, Inc., a provider of digital health and ambulatory cardiac monitoring technologies. This acquisition will boost HillRom with a highly innovative and unique diagnostic cardiology platform aligned with its vision of Advancing Connected Care. In February, this company announced the buyout of contact-free continuous monitoring technology from EarlySense.
Year to date, shares of the company have gained 12.8% compared with the S&P 500 Index’s rally of 5.7%.
Surmodics, Inc. (SRDX - Free Report) : In September 2020, this presently Zacks #2 Ranked player received an FDA 510(k) clearance for its Pounce Thrombus Retrieval System, which enables non-surgical removal of thrombi and emboli from the peripheral arterial vasculature. Notably, this approval will provide a boost to Surmodics’ Medical Devices segment. Last August, the company attained the FDA 510(k) clearance for its Sublime Radial Access 0.014 Rapid Exchange (RX) Percutaneous Transluminal Angioplasty (PTA) Dilatation Catheter.
Year to date, the stock has jumped 28.8% compared with the S&P 500 Index’s rally of 5.7%
Owens & Minor, Inc. (OMI - Free Report) :This currently Zacks #1 Ranked company continues to expand its production and invest in its capacity to equip frontline workers with procedure masks and N95 respirators. Since February 2020, the company has manufactured and provided surgical N95 respirators, surgical and procedure masks as well as face shields.
Year to date, shares of this company have surged 38.9% compared with the S&P 500 Index’s rally of 5.7%
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>