6 Med-Tech and Medical-Device Stocks to Buy

Health care, which makes up nearly 18% of American GDP, has long been a fruitful hunting ground for investors seeking growth.

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Health care, which makes up nearly 18% of American GDP, has long been a fruitful hunting ground for investors seeking growth. And medical-tech and medical-device stocks have always been particularly compelling niches.

Not only do these companies ride the coattails of inexorable health-care spending, but their commitment to research and development can create new industries that they can in turn dominate.

It's not an easy time right now, of course. The COVID-19 outbreak has taken a chunk out of every sector and almost every industry, with only a few "coronavirus stocks" enjoying any meaningful gains. Medical devices have at least been better than the market, which has declined by about 29% in this bear market so far, as measured by the S&P 500. But the iShares U.S. Medical Devices ETF (IHI) still has been cut to the tune of 25% in the same time frame.

That could provide investors with a chance to buy medical-device stocks and other med-tech plays at a significant discount, however. While their growth might be stunted in the short-term, their longer-term prospects are likely to improve again once the COVID-19 threat is contained – and a few are seeing additional business in the wake of the outbreak.

Here, we look at six med-tech and medical-device stocks to buy.

Disclaimer

Data is as of March 17.

Ken Berman
Contributing Writer, Kiplinger.com
Email: ken.berman@gorillatrades.com
Website: gorillatrades.com
LinkedIn: Gorilla Trades
Phone: (866) 222-6639

Ken Berman has been buying and selling stocks since he was a teenager and met with early success trading then-fledgling biotech stocks like Amgen, Biogen and Immunex. He later became a broker and worked for two wire houses, where he developed a proprietary system for buying and selling equities. In 1999, Mr. Berman formalized his method under the Gorilla Trades name and now has subscribers in the U.S. and 55 other countries around the world.