More than half of the American populace uses wearable devices to track calories, measure oxygen saturation (SpO2), monitor sleep, fetal monitoring, pulse rate analysis, maintain blood pressure and self-glucose monitoring.
Per a recent research report by the BrandEssence, the wearable medical devices market was valued at $6.58 billion in 2017 and is expected to reach a worth of $25.46 Billion before 2024, at a CAGR of about 21.32%.
Considering the trends, analysts and tech enthusiasts are expecting significant growth in the wearable medical devices market. Thus, companies involved in the development of wearable medical devices are likely to draw investors’ attention.
Tech Behemoths Reigning the Space
Since the advent of the smartphone, tech companies have been working to apply medical uses to phone-connected, body-mounted sensors.
After the release of Apple’s (AAPL - Free Report) FDA-approved Watch Series 4 that captures an electrocardiogram seamlessly, Fitbit, Inc. (FIT - Free Report) recently announced that its latest wearable, Charge 3, is available globally. The product, priced at $149.95, features 24/7 PurePulse heart rate technology that is more advanced, with more than nine trillion minutes of heart rate data. Further, it includes SpO2 sensor that tracks oxygen level in blood, sleeping disorders, allergies and asthma.
Let us take a quick look at three companies from the MedTech space that are gaining momentum in the wearable devices space.
3 MedTech Companies Gaining Momentum
We have zeroed in on three MedTech stocks that have significant exposure towearable technology and are raking in billions.
Masimo Corporation (MASI - Free Report) : Masimo is a strong player in the U.S. MedTech space. The company’s wide exposure to wireless technology is supported by its SET Pulse Oximetry platform.
The company’s flagship Radius 7 platform is small, lightweight and wearable for untethered monitoring as well as ambulation. It is used for measuring SpO2 and monitoring pulse rate. The platform leverages on Masimo’s SET Measure-through Motion and Low Perfusion pulse oximetry platform.
Masimo's shares have outperformed the industry in the past year. The stock has rallied 40.4% compared with the industry's increase of 22.9%. The stock has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Medtronic PLC (MDT - Free Report) : Medtronic announced integration with a popular fitness wearable company, Garmin International Inc., a unit of Garmin Ltd. (GRMN - Free Report) . The company will leverage on Garmin’s wearable device data for remote patient monitoring. Medtronic integrated Garmin data directly into Medtronic Care Management Services' (MCMS) platform.
The collaboration is revolutionary as it synced Garmin vívofit series activity tracker data into the MCMS NetResponse mobile application. This enabled patients and physicians to better manage health conditions from home. Also, it gave healthcare providers to check on patients’ activities at home post discharge from hospital.
In 2016, Medtronic partnered with Fitbit to integrate health and activity tracking for patients suffering from diabetes as well as their physicians and care teams.
The stock has a Zacks Rank #3 (Hold). Medtronic’s shares have returned 26.3% in a year’s time compared with the industry’s return of 20.5%.
DexCom, Inc (DXCM - Free Report) : The company’s FDA-cleared CGM system — the Dexcom G5 mobile app — for Android devices is a compact CGM System that works seamlessly to display real-time glucose activity on smart phones or watches, tablets and other compatible devices. This makes DexCom’s solutions easy, user friendly and propels its demand.
Apart from this, the company has a very unique application — DexCom Follow App — which enables 5 people to remotely monitor the patient’s glucose data and trends.
DexCom’s shares have outperformed the industry in a year’s time. Notably, the company’s shares have surged 167.4% compared with the industry’s rise of 22.8%. The stock has a Zacks Rank #3.
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