The MedTech industry has been grappling with multiple issues since President Donald Trump started working toward removing Obamacare. After a series of futile attempts, Republicans settled for a “skinny repeal”, only to meet with failure again.
The political scenario worsened after three Republicans voted in favor of the existing Healthcare Act. As a blessing in disguise, this has been able to delay the Cadillac tax until 2026. Also, the MedTech industry is hopeful that Trump’s government will do away with the 2.3% medical device tax soon.
Of late, Trump has been striving to implement some regulatory changes. Notably, Trump signed the FDA Reauthorization Act (FDARA) into law which extends through fiscal 2022 and revises FDA user fees for medical devices. Also, the Centers for Medicare and Medicaid Services (CMS) recently issued a proposed rule under which, beginning October, Medicaid disproportionate share hospital (DSH) allotments will be slashed by more than $43 billion over a period of 10 years.
Stocks to Pick Right Now
In such a mixed scenario, we have used the Zacks Stock Screener to pick stocks for significant gains. We have narrowed down to five stocks which carry a strong Zacks Rank #1 (Strong Buy) or 2 (Buy) along with a long-term expected growth of 15% or higher, and sales growth of more than 10%. We have also taken a Growth Style Score of A or B into consideration.
Our Growth Style Score highlights all of the vital metrics of the company’s financials to obtain a clearer picture of the quality and sustainability of growth. Our research shows that stocks with Style Scores of A or B, when combined with a Zacks Rank #1 or 2, offer the best investment opportunities.
IDEXX Laboratories, Inc. IDXX: IDEXX Laboratories is a developer, manufacturer and distributer of products and services primarily for the companion animal veterinary, livestock and poultry, water testing and dairy markets. This Zacks Rank #2 company has a long-term expected earnings growth rate of 19.8% and a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
IDEXX Laboratories boasts an annual sales growth of around 10.8%. The stock has gained 43.7% over the past year compared to the industry’s 8.1%.
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LeMaitre Vascular, Inc. LMAT: The company markets, sells, services, and supports medical devices and implants for the treatment of peripheral vascular disease worldwide. LeMaitre has a Zacks Rank #2 and promises a long-term expected earnings growth rate of 15%. With a Growth Score of A, the company’s annual sales growth is 13.8%. The stock has gained 77.6% over the last year compared to the broader industry’s gain of 10.4%.
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Veracyte, Inc. VCYT: Veracyte is a diagnostics company. It is focused on discovering, developing and commercializing molecular cytology solutions. The stock carries a Zacks Rank #2 and a Growth Score of B. The company has a long-term expected earnings growth rate of 25% and the annual sales growth of 31.5%. The stock has gained 18.2% over the past year, higher than the broader industry’s 8.1%.
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Amedisys, Inc. AMED: This company is a leading multi-regional provider of home health care nursing services. This Zacks Rank #2 company has a long-term expected earnings growth rate of 18.2% and a Growth Score of A. The annual sales growth is around 12.3% and the stock has gained 26.8% over the last two years compared to the broader industry’s decline of 6.9%.
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Straumann Holding AG SAUHF: This company is a global leader in implant and restorative dentistry and oral tissue regeneration. It sports a Zacks Rank # 1 and promises a long-term expected earnings growth rate of 15%. Annual sales growth is estimated at 12.1%. The stock has gained 65.1% over the last year compared to the broader industry’s 8.3%.
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Cyberattacks have become more frequent and destructive than ever. In fact, they’re expected to cause $6 trillion per year in damage by 2020.
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