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3 MedTech Stocks That Crushed the S&P 500 Over the Past Year
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Key Takeaways
TransMedics, KORU Medical Systems and Cardinal Health delivered one-year returns well ahead of the S&P 500.
TMDX surged on Organ Care System adoption, NOP expansion, improving service revenue and operating leverage.
CAH gained as pharma and specialty demand lifted earnings, cash flow and prompted higher fiscal 2026 outlook.
Beating the S&P 500 over a sustained period requires more than headline-driven rallies or short-term multiple expansion. In MedTech, durable outperformance is typically underpinned by structural demand drivers, improving execution and clear visibility into earnings power. Over the past year, a select group of medical technology names has significantly outperformed the broader market, driven by company-specific catalysts rather than sector-wide factors.
This article highlights three MedTech stocks —TransMedics (TMDX - Free Report) , KORU Medical Systems (KRMD - Free Report) , and Cardinal Health (CAH - Free Report) — that delivered returns well ahead of the S&P 500’s 19.3% over the past year. Each represents a different segment of the MedTech ecosystem, ranging from high-growth innovation to niche recurring revenue models and large-scale healthcare distribution. Together, they illustrate how execution and positioning — not size alone — can drive alpha.
Despite operating in different corners of MedTech, TMDX, KRMD and CAH share several common traits. Each benefited from clear company-specific catalysts, demonstrated improving operational execution, and offered investors greater earnings visibility than the broader market. Importantly, their outperformance was not purely multiple-driven but supported by tangible financial progress cited directly by management.
Image Source: Zacks Investment Research
3 Stocks That Crushed S&P 500
These three MedTech stocks show that index-beating performance often emerges where secular demand meets disciplined execution. Sustaining that outperformance will depend on continued delivery against guidance, margin progression and effective capital allocation.
TransMedics: Scaling a Transplant Ecosystem
Shares of TransMedics have gained 89.8% in the past year. The company’s outperformance has been driven by accelerating adoption of its Organ Care System (“OCS”) platform and the continued expansion of its integrated National OCS Program (“NOP”), which combines devices, logistics and clinical services. In the third quarter of 2025, the company reported revenues of $143.8 million, representing 32% year-over-year growth, despite a typical seasonal slowdown in U.S. transplant volumes.
Growth was broad-based across organs, led by liver transplants, while service revenues —particularly transplant logistics — rose 35% year over year, reflecting higher utilization of TransMedics’ owned aircraft fleet. Importantly, operating leverage is beginning to emerge. Operating margin expanded to roughly 16% in the third quarter, up sharply from the prior year, as higher fleet utilization and logistics efficiencies offset continued infrastructure investments.
The Zacks Consensus Estimate for 2026 sales is pegged at $723.8 million, implying approximately 20.5% growth, reinforcing confidence in sustained momentum. TransMedics is investing for growth ahead, including expansion into Europe with an initial NOP launch in Italy expected in the first half of 2026. While this introduces near-term execution risk, it also expands the addressable market beyond the United States.
The stock’s outperformance reflects investor confidence that TransMedics is evolving from a device supplier into a scaled transplant infrastructure platform. Key risks remain tied to execution, capital intensity, and valuation sensitivity, but the underlying growth trajectory remains intact.
KORU Medical Systems: Recurring Growth with Pipeline Optionality
KORU Medical Systems’ strong 45.5% growth in the past year has been fueled by accelerating growth in its core subcutaneous immunoglobulin (SCIg) infusion business and improving financial discipline. In the third quarter of 2025, KRMD posted revenues of $10.4 million, marking 27% year-over-year growth and its second consecutive quarter above the $10 million threshold.
Core SCIg revenues grew approximately 30%, driven by international expansion, market share gains and continued patient growth. While reported U.S. revenues dipped due to distributor inventory adjustments, management emphasized that underlying end-market demand remained robust. International revenues surged, supported by prefilled syringe conversions in Europe, which also drive higher consumables pull-through over time.
From a profitability standpoint, KRMD delivered gross margins above 60% and generated positive adjusted EBITDA and operating cash flow during the quarter, signaling progress toward sustained profitability. The Zacks Consensus Estimate for 2026 sales is pegged at $49 million, implying 20.2% growth.
Beyond its core Ig franchise, KORU is advancing a pipeline of non-Ig drug collaborations and pursuing entry into oncology infusion centers. The company has submitted a 510(k) premarket notification to the FDA seeking clearance for the use of FreedomEDGE infusion system to subcutaneously administer PHESGO. These initiatives provide optionality that is not yet reflected in current revenues.
KRMD’s outperformance underscores investor appetite for small-cap MedTech companies that combine recurring revenues, improving margins and a visible path to profitability, albeit with higher volatility risk.
KRMD currently carries a Zacks Rank #2 (Buy). The loss per share estimates for 2026 have narrowed 2 cents to 1 cent over the past 60 days. The company has a Zacks Style Score of ‘B’.
Cardinal Health stock has surged 35.3% over the past year. Unlike the higher-growth profiles of TMDX and KRMD, Cardinal Health’s outperformance has been driven by earnings durability and operational execution. In the first quarter of fiscal 2026, the company reported revenues of $64 billion, up 22% year over year, alongside earnings per share of $2.55, representing 36% growth.
Performance was led by the Pharmaceutical and Specialty Solutions segment, where strong brand, specialty, and GLP-1 demand drove 23% revenue and 26% profit growth in the quarter. Importantly, Cardinal Health delivered 37% operating earnings growth while maintaining disciplined cost control, highlighting improved operating leverage.
Management raised full-year fiscal 2026 earnings per share guidance to $9.65-$9.85, implying 17-20% growth, and adjusted free cash flow guidance to $3-$3.5 billion. The company also returned $500 million to shareholders during the quarter through dividends and accelerated share repurchases, reinforcing its capital return profile.
Investments in specialty distribution, at-home solutions, and nuclear and precision health businesses further support longer-term growth, while scale and utilization trends provide downside protection. CAH’s stock gains reflect a re-rating driven by improved visibility, stronger cash generation and restored confidence in execution.
CAH currently carries a Zacks Rank of 2. The earnings estimates for 2026 have moved north 7 cents to $9.86 per share over the past 60 days. The company has a Zacks Style Score of ‘A’.
Image: Bigstock
3 MedTech Stocks That Crushed the S&P 500 Over the Past Year
Key Takeaways
Beating the S&P 500 over a sustained period requires more than headline-driven rallies or short-term multiple expansion. In MedTech, durable outperformance is typically underpinned by structural demand drivers, improving execution and clear visibility into earnings power. Over the past year, a select group of medical technology names has significantly outperformed the broader market, driven by company-specific catalysts rather than sector-wide factors.
This article highlights three MedTech stocks —TransMedics (TMDX - Free Report) , KORU Medical Systems (KRMD - Free Report) , and Cardinal Health (CAH - Free Report) — that delivered returns well ahead of the S&P 500’s 19.3% over the past year. Each represents a different segment of the MedTech ecosystem, ranging from high-growth innovation to niche recurring revenue models and large-scale healthcare distribution. Together, they illustrate how execution and positioning — not size alone — can drive alpha.
Despite operating in different corners of MedTech, TMDX, KRMD and CAH share several common traits. Each benefited from clear company-specific catalysts, demonstrated improving operational execution, and offered investors greater earnings visibility than the broader market. Importantly, their outperformance was not purely multiple-driven but supported by tangible financial progress cited directly by management.
Image Source: Zacks Investment Research
3 Stocks That Crushed S&P 500
These three MedTech stocks show that index-beating performance often emerges where secular demand meets disciplined execution. Sustaining that outperformance will depend on continued delivery against guidance, margin progression and effective capital allocation.
TransMedics: Scaling a Transplant Ecosystem
Shares of TransMedics have gained 89.8% in the past year. The company’s outperformance has been driven by accelerating adoption of its Organ Care System (“OCS”) platform and the continued expansion of its integrated National OCS Program (“NOP”), which combines devices, logistics and clinical services. In the third quarter of 2025, the company reported revenues of $143.8 million, representing 32% year-over-year growth, despite a typical seasonal slowdown in U.S. transplant volumes.
Growth was broad-based across organs, led by liver transplants, while service revenues —particularly transplant logistics — rose 35% year over year, reflecting higher utilization of TransMedics’ owned aircraft fleet. Importantly, operating leverage is beginning to emerge. Operating margin expanded to roughly 16% in the third quarter, up sharply from the prior year, as higher fleet utilization and logistics efficiencies offset continued infrastructure investments.
The Zacks Consensus Estimate for 2026 sales is pegged at $723.8 million, implying approximately 20.5% growth, reinforcing confidence in sustained momentum. TransMedics is investing for growth ahead, including expansion into Europe with an initial NOP launch in Italy expected in the first half of 2026. While this introduces near-term execution risk, it also expands the addressable market beyond the United States.
The stock’s outperformance reflects investor confidence that TransMedics is evolving from a device supplier into a scaled transplant infrastructure platform. Key risks remain tied to execution, capital intensity, and valuation sensitivity, but the underlying growth trajectory remains intact.
TMDX currently carries a Zacks Rank #3 (Hold). The earnings estimates for 2026 have moved north 4 cents to $2.71 per share over the past 60 days. The company has a Zacks Style Score of ‘B’. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
TransMedics Group, Inc. Price
TransMedics Group, Inc. price | TransMedics Group, Inc. Quote
KORU Medical Systems: Recurring Growth with Pipeline Optionality
KORU Medical Systems’ strong 45.5% growth in the past year has been fueled by accelerating growth in its core subcutaneous immunoglobulin (SCIg) infusion business and improving financial discipline. In the third quarter of 2025, KRMD posted revenues of $10.4 million, marking 27% year-over-year growth and its second consecutive quarter above the $10 million threshold.
Core SCIg revenues grew approximately 30%, driven by international expansion, market share gains and continued patient growth. While reported U.S. revenues dipped due to distributor inventory adjustments, management emphasized that underlying end-market demand remained robust. International revenues surged, supported by prefilled syringe conversions in Europe, which also drive higher consumables pull-through over time.
From a profitability standpoint, KRMD delivered gross margins above 60% and generated positive adjusted EBITDA and operating cash flow during the quarter, signaling progress toward sustained profitability. The Zacks Consensus Estimate for 2026 sales is pegged at $49 million, implying 20.2% growth.
Beyond its core Ig franchise, KORU is advancing a pipeline of non-Ig drug collaborations and pursuing entry into oncology infusion centers. The company has submitted a 510(k) premarket notification to the FDA seeking clearance for the use of FreedomEDGE infusion system to subcutaneously administer PHESGO. These initiatives provide optionality that is not yet reflected in current revenues.
KRMD’s outperformance underscores investor appetite for small-cap MedTech companies that combine recurring revenues, improving margins and a visible path to profitability, albeit with higher volatility risk.
KRMD currently carries a Zacks Rank #2 (Buy). The loss per share estimates for 2026 have narrowed 2 cents to 1 cent over the past 60 days. The company has a Zacks Style Score of ‘B’.
KORU Medical Systems, Inc. Price
KORU Medical Systems, Inc. price | KORU Medical Systems, Inc. Quote
Cardinal Health: Execution Drives a Re-Rating
Cardinal Health stock has surged 35.3% over the past year. Unlike the higher-growth profiles of TMDX and KRMD, Cardinal Health’s outperformance has been driven by earnings durability and operational execution. In the first quarter of fiscal 2026, the company reported revenues of $64 billion, up 22% year over year, alongside earnings per share of $2.55, representing 36% growth.
Performance was led by the Pharmaceutical and Specialty Solutions segment, where strong brand, specialty, and GLP-1 demand drove 23% revenue and 26% profit growth in the quarter. Importantly, Cardinal Health delivered 37% operating earnings growth while maintaining disciplined cost control, highlighting improved operating leverage.
Management raised full-year fiscal 2026 earnings per share guidance to $9.65-$9.85, implying 17-20% growth, and adjusted free cash flow guidance to $3-$3.5 billion. The company also returned $500 million to shareholders during the quarter through dividends and accelerated share repurchases, reinforcing its capital return profile.
Investments in specialty distribution, at-home solutions, and nuclear and precision health businesses further support longer-term growth, while scale and utilization trends provide downside protection. CAH’s stock gains reflect a re-rating driven by improved visibility, stronger cash generation and restored confidence in execution.
CAH currently carries a Zacks Rank of 2. The earnings estimates for 2026 have moved north 7 cents to $9.86 per share over the past 60 days. The company has a Zacks Style Score of ‘A’.
Cardinal Health, Inc. Price
Cardinal Health, Inc. price | Cardinal Health, Inc. Quote