Medtech Marvels: 3 Groundbreaking Medical Device Stocks to Watch in 2024

The value of the “global medical device market” is expected to jump from over $500 billion last year to nearly $800 billion “by 2030.” According to the World Health Organization, “a medical device can be any instrument, apparatus, implement, machine, appliance, implant, reagent for in vitro use, software, material or other similar or related article.”

Among the most exciting medical devices from an investment point of view are robotic surgical products, plastic surgery devices, glucose measuring products for diabetes patients and general health monitoring systems. All of these offerings can become huge bestsellers and generate huge profits for companies. Further, the firms that market them and other popular medical devices can become takeover targets.

One recent example of the latter phenomenon occurred earlier this month when Johnson & Johnson (NYSE:JNJ) agreed to buy Shockwave Medical (NASDAQ:SWAV), a medical device company that I’ve touted in multiple past columns. Here are three other groundbreaking medtech stocks to watch in 2024.

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Masimo (MASI)

Red blood cells.

Source: Corona Borealis Studio / Shutterstock

Masimo (NASDAQ:MASI) specializes in developing and marketing devices that monitor peoples’ health. Its products evaluate hemoglobin levels, brain functioning and even gas levels. It also makes products that lower pain and addiction levels.

I believe that with U.S. healthcare costs consistently rising, insurers and hospitals will look to utilize more diagnostic products than ever in order to catch illnesses early so they can reduce their treatment costs.

Masimo’s expected rapid growth appears to validate my thesis. For 2024, the company anticipates that its operating profit will come in at $198 million to $214 million, versus its 2023 operarting income of $146.7 million. And analysts expect earnings per share to climb to $3.52 this year from $3.17 in 2023.

MASI’s strong outlook and important, money-saving products make it one of the top medtech stocks to watch in 2024.

Also, the fact that GE Healthcare (NYSE:GEHC) markets Masimo’s products partially validate MASI’s technology and bodes well for its outlook.

Dexcom (DXCM)

A photo of a phone giving various medical information from an arm insertion.

Dexcom’s (NASDAQ:DXCM) products “allow Type 2 diabetic patients to continuously monitor their sugar levels,” notes Investor’s Business Daily, which has given the firm the title of “Sector Leader.” Dexcom, which sits atop IBD’s Medical Products firms, attained that status by virtue of its “outstanding sales and earnings growth as well as (its) strong price performance,” the publication noted.

Last month, DXCM obtained approval from the Food and Drug Administration to market a product that can be utilized by individuals with mild forms of diabetes who don’t require insulin. Importantly, the device can be purchased without a prescription. The new offering should significantly increase the company’s top and bottom lines as many prediabetic Americans and mildly diabetic consumers will likely want to keep tabs on their progress.

Analysts, on average, expect the company’s earnings per share to climb to $1.76 this year from $1.52 in 2023.

Intuitive Surgical (ISRG)

A sign with the Intuitive Surgical logo standing outside of a company office. ISRG stock.

Source: Sundry Photography / Shutterstock.com

Intuitive Surgical (NASDAQ:ISRG), which provides products that enable robotic-assisted surgery, recently reported strong first-quarter results, showing that its products’ utilization is continuing to climb rapidly.

Last quarter, the firm’s revenue rose 11% versus the same period a year earlier to $1.7 billion, while its earnings per share soared 51% to $1.51 in Q1 from $1 in Q1 of 2023. The number of procedures carried out using its products increased 16% year-over-year, while its installed base climbed 14% year-over-year to 8,887.

Also noteworthy is that in January the firm obtained approval from the European medical devices regulator to sell its “single port” product “for use in endoscopic abdominopelvic, thoracoscopic, transoral otolaryngology, transanal colorectal, and breast surgical procedures.”

ISRG is one of Bank of America’s favorite picks and Investor’s Business Daily gives it a high Composite Rating of 88 out of 99.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.

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