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4 MedTech Stocks Poised to Outshine Q1 Earnings Estimates
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The first-quarter reporting cycle is off to a positive start, with most companies beating on estimates. However, uncertainty about the overall macroeconomic picture continues to be a significant drag on the earnings outlook as a whole, prompting analysts to cut their estimates for future quarters. Meanwhile, the Medical sector’s earnings growth seems to outshine other sectors significantly. This sector can act as a cushion amid rising volatility across global markets due to increasing tariffs.
The key medical product companies that have released their earnings so far showed continued recovery following a period of rising costs and supply-chain disruptions in 2024. The integration of artificial intelligence is likely to be a key driver for adoption of medical devices in 2025. Moreover, at-home medical solutions are likely to continue their growth trend this year as well. Although MedTech companies are likely to reflect unfavorable impact of rising tariffs going forward, majority of these companies have reported better-than-expected earnings and revenues. The metrics have also improved year over year.
The Earnings Trends report indicates that as of April 30, 45% of the companies in the Medical sector, representing 57.9% of the sector’s market capitalization, reported quarterly earnings. Almost 85.2% of industry participants beat on earnings, while 70.4% beat on revenues. While earnings improved 60.5% year over year, revenues rose 7.8%.
The top line was driven by improving demand for medical products. The bottom line grew significantly on improved pricing as well as cost-savings initiatives. Overall, the Medical sector’s first-quarter earnings are expected to surge 40%, while sales are anticipated to increase 8.3% year over year.
The Zacks Methodology
Picking the right stock could be difficult unless one knows the proper method. To make the task simple, we rely on the Zacks methodology, combining a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) and a positive Earnings ESP.
Our proprietary methodology, Earnings ESP, shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Research shows that for stocks with this combination of the Zacks Rank and ESP, chances of a positive earnings surprise are as high as 70%.
Winning Stocks
For investors willing to adopt this strategy, we have highlighted five construction stocks that may stand out this earnings season.
Hims & Hers Health, a consumer-centric health and wellness platform, topped earnings estimates in two of the trailing four quarters, missed in one and met in the other, delivering an average surprise of 40.42%.
Hims & Hers Health is likely to beat expectations when it reports first-quarter 2025 results on May 5, after market close. This Zacks Rank #2 company has an Earnings ESP of +115.69%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hims & Hers Health’ first-quarter EPS is pegged at 14 cents, suggesting growth of 180% from the year-ago reported figure.
Globus Medical — a global medical device company that develops and commercializes solutions for musculoskeletal disorders — beat on earnings in each of the trailing four quarters, the average surprise being 19.86%.
Globus Medical is likely to beat expectations when it reports first-quarter 2025 results on May 8, after market close. This Zacks Rank #3 company has an Earnings ESP of +2.40%.
The Zacks Consensus Estimate for Globus Medical’s first-quarter EPS is pegged at 74 cents, implying growth of 2.8% from the year-ago reported figure.
QuidelOrtho— a key player in the provision of in-vitro diagnostics technologies designed for point-of-care settings, clinical labs and transfusion medicine — topped earnings estimates in each of the trailing four quarters, the average beat being 64.44%.
QuidelOrtho is likely to beat expectations when it reports first-quarter 2025 results on May 7, after market close. This Zacks Rank #3 company has an Earnings ESP of +10.00%.
The Zacks Consensus Estimate for QuidelOrtho’s first-quarter EPS is pegged at 60 cents, indicating an improvement of 36.4% from the year-ago period’s level.
Haemonetics, which provides blood management solutions, topped earnings estimates in two of the trailing four quarters, met in one and missed in the other, delivering an average surprise of 1.01%.
Haemonetics is likely to beat expectations when it reports first-quarter 2025 results. This Zacks Rank #3 company has an Earnings ESP of +1.81%.
The Zacks Consensus Estimate for Haemonetics’ first-quarter EPS is pegged at $1.22, suggesting an increase of 35.6% from the year-ago quarter’s level.
Image: Bigstock
4 MedTech Stocks Poised to Outshine Q1 Earnings Estimates
The first-quarter reporting cycle is off to a positive start, with most companies beating on estimates. However, uncertainty about the overall macroeconomic picture continues to be a significant drag on the earnings outlook as a whole, prompting analysts to cut their estimates for future quarters. Meanwhile, the Medical sector’s earnings growth seems to outshine other sectors significantly. This sector can act as a cushion amid rising volatility across global markets due to increasing tariffs.
The key medical product companies that have released their earnings so far showed continued recovery following a period of rising costs and supply-chain disruptions in 2024. The integration of artificial intelligence is likely to be a key driver for adoption of medical devices in 2025. Moreover, at-home medical solutions are likely to continue their growth trend this year as well. Although MedTech companies are likely to reflect unfavorable impact of rising tariffs going forward, majority of these companies have reported better-than-expected earnings and revenues. The metrics have also improved year over year.
With the help of the Zacks Stock Screener, some of the companies under the broader Medical sector, including Hims & Hers Health (HIMS - Free Report) , Globus Medical (GMED - Free Report) , QuidelOrtho (QDEL - Free Report) and Haemonetics (HAE - Free Report) , are poised to beat on earnings this reporting cycle. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
The Earnings Trends report indicates that as of April 30, 45% of the companies in the Medical sector, representing 57.9% of the sector’s market capitalization, reported quarterly earnings. Almost 85.2% of industry participants beat on earnings, while 70.4% beat on revenues. While earnings improved 60.5% year over year, revenues rose 7.8%.
The top line was driven by improving demand for medical products. The bottom line grew significantly on improved pricing as well as cost-savings initiatives. Overall, the Medical sector’s first-quarter earnings are expected to surge 40%, while sales are anticipated to increase 8.3% year over year.
The Zacks Methodology
Picking the right stock could be difficult unless one knows the proper method. To make the task simple, we rely on the Zacks methodology, combining a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) and a positive Earnings ESP.
Our proprietary methodology, Earnings ESP, shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Research shows that for stocks with this combination of the Zacks Rank and ESP, chances of a positive earnings surprise are as high as 70%.
Winning Stocks
For investors willing to adopt this strategy, we have highlighted five construction stocks that may stand out this earnings season.
Hims & Hers Health, a consumer-centric health and wellness platform, topped earnings estimates in two of the trailing four quarters, missed in one and met in the other, delivering an average surprise of 40.42%.
Hims & Hers Health is likely to beat expectations when it reports first-quarter 2025 results on May 5, after market close. This Zacks Rank #2 company has an Earnings ESP of +115.69%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hims & Hers Health’ first-quarter EPS is pegged at 14 cents, suggesting growth of 180% from the year-ago reported figure.
Hims & Hers Health, Inc. Price and EPS Surprise
Hims & Hers Health, Inc. price-eps-surprise | Hims & Hers Health, Inc. Quote
Globus Medical — a global medical device company that develops and commercializes solutions for musculoskeletal disorders — beat on earnings in each of the trailing four quarters, the average surprise being 19.86%.
Globus Medical is likely to beat expectations when it reports first-quarter 2025 results on May 8, after market close. This Zacks Rank #3 company has an Earnings ESP of +2.40%.
The Zacks Consensus Estimate for Globus Medical’s first-quarter EPS is pegged at 74 cents, implying growth of 2.8% from the year-ago reported figure.
Globus Medical, Inc. Price and EPS Surprise
Globus Medical, Inc. price-eps-surprise | Globus Medical, Inc. Quote
QuidelOrtho— a key player in the provision of in-vitro diagnostics technologies designed for point-of-care settings, clinical labs and transfusion medicine — topped earnings estimates in each of the trailing four quarters, the average beat being 64.44%.
QuidelOrtho is likely to beat expectations when it reports first-quarter 2025 results on May 7, after market close. This Zacks Rank #3 company has an Earnings ESP of +10.00%.
The Zacks Consensus Estimate for QuidelOrtho’s first-quarter EPS is pegged at 60 cents, indicating an improvement of 36.4% from the year-ago period’s level.
QuidelOrtho Corporation Price and EPS Surprise
QuidelOrtho Corporation price-eps-surprise | QuidelOrtho Corporation Quote
Haemonetics, which provides blood management solutions, topped earnings estimates in two of the trailing four quarters, met in one and missed in the other, delivering an average surprise of 1.01%.
Haemonetics is likely to beat expectations when it reports first-quarter 2025 results. This Zacks Rank #3 company has an Earnings ESP of +1.81%.
The Zacks Consensus Estimate for Haemonetics’ first-quarter EPS is pegged at $1.22, suggesting an increase of 35.6% from the year-ago quarter’s level.
Haemonetics Corporation Price and EPS Surprise
Haemonetics Corporation price-eps-surprise | Haemonetics Corporation Quote