In recent years, the medical instruments industry, part of the wider
Medical sector, has seen a transformation in the nature of its business that led to higher research and development activities for developing cutting-edge technologies. The industry’s landscape changed further with the onset of the COVID-19 crisis that put robotic and remote services in the limelight.
However, the industry is currently facing several challenges, including deteriorating international trade conditions and global inflationary pressure. These developments have resulted in an extremely tough situation related to raw material and labor costs as well as freight charges. Moreover, the uncertainty surrounding another resurgence of COVID-19 infections amid the emergence of new COVID strains in several parts of the world has raised concerns related to the magnitude of economic revival following the reopening of the economies.
Although the industry faced headwinds, a few medical instruments companies were able to maintain their recovery trend in the first half of 2022. However, staffing shortages and supply chain-related hazards are likely to hurt the industry players in the rest of 2022.
Here we discuss three medical instruments stocks —
ShockWave Medical ( SWAV Quick Quote SWAV - Free Report) , CheckCap ( CHEK Quick Quote CHEK - Free Report) and Biosig Technologies ( BSGM Quick Quote BSGM - Free Report) — which are likely to outperform the industry going forward despite macro headwinds and a gloomy world economic outlook. These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). These stocks also have a Momentum Score of A or B, which indicates that these would be good stocks for momentum investors based on recent price changes and earnings estimate revisions. ShockWave Medical
The company carries a Zacks Rank #1. ShockWave Medical has a Momentum Score of B. The Zacks Consensus Estimate for earnings has moved 25.4% and 15.2% north for 2022 and 2023, respectively, in the past 60 days.
The increased adoption of coronary IVL in the United States, continued sales force expansion, growing international expansion and higher adoption of Shockwave products are likely to boost the company’s performance. The company’s strong global growth highlights the significant clinical need for a better calcium treatment and how well the team at ShockWave Medical is addressing the same with IVL.
The company carries a Zacks Rank #1. CheckCap has a Momentum Score of A. The Zacks Consensus Estimate for loss has narrowed 5% and 5.3% for 2022 and 2023, respectively, in the past 60 days.
CheckCap is a clinical-stage company that initiated a pivotal study on C-Scan, during the second quarter 2022, that focuses on device calibration and enhancement of C-Scan algorithms among the average risk U.S. population. A positive study outcome will likely bolster the company’s prospects.
The company carries a Zacks Rank of 2. Biosig Technologies has a Momentum Score of A. The Zacks Consensus Estimate for loss has narrowed 3% for 2022 and remained stable for 2023 in the past 60 days.
Biosig Technologies is principally devoted to improving the standard care in electrophysiology with its PURE EP System’s enhanced signal acquisition, digital signal processing, and analysis during the ablation of cardiac arrhythmias. The company is carrying out a national rollout strategy to support the availability of its PURE EP System.