The United States has hit rough waters of late. Few analysts label the troubles as self-invited while others foresee a revolution. Rising trade war tensions between the United States and China are showing no signs of abatement. The issue has escalated to a point where imposition of tariffs and retaliatory tariffs may go up to $450 billion on both the sides.
Moreover, President Trump’s mulling over a restriction for Chinese companies when it comes to investing in U.S. tech firms to avert technology export is likely to worsen the scenario. If this wasn’t enough, the United States is urging countries to stop importing oil from Iran by November, raising supply-related concerns
Furthermore, Trump’s decision to impose tariffs on steel and aluminum imported from China, the European Union, Mexico and Canada along with threats of higher tariffs for imported cars and auto parts have raised concerns.
MedTech on Stable Ground
In the wake of such a rocky scenario, investors are consistently on the lookout for safer sectors. With tailwinds like favorable consumer behavior, growing demand for liquid biopsy tests along with deferred implementation of an industry-wide Medical Device tax backing the sector, the medical device space seems to be in safer territories. Per Emergo, the U.S. Medical Device industry is likely to be worth $173 billion by 2019.
Minimally-Invasive Surgical Device Market Hogs Limelight
For investors trying to pick a sub-industry with booming prospects, the minimally-invasive surgical device market is the final stop.
Reduced stay at hospital, lower healthcare costs and pain, scaring and tissue-damage are certain benefits of opting for minimally-invasive surgery over the traditional process.
Persistence Market Research estimates the global minimally-invasive surgical device market to value around $18,900 million in 2022, at a CAGR of 6.8% between 2017 and 2022. Per a report by Mordor intelligence, the U.S. minimally invasive surgery device market is projected to see a CAGR of 8.65% between 2018 and 2023.
Factors Driving the Market
The minimally-invasive surgical device market is largely dependent on the aging population. Per the U.S. Census Bureau report, in 2050, people aged 65 or more are likely to total 83.7 million, almost double its estimated population of 43.1 million in 2012. Data also shows that the median age is increasing in most areas of the country and the global scenario is pretty similar.
Strengthening emerging markets have been contributing largely to the rise in demand for minimally-invasive surgical devices. Geographically, the market is divided into North America, Europe, Latin America, Asia-Pacific, and Middle East & Africa. Per Wise Guy Reports, the demand for minimally-invasive surgical devices will be solid in the Asia-Pacific region, the expected CAGR being 12.2% between 2016 and 2021.
The growing dominance of AI applications in healthcare and technological revolution, new avenues and opportunities in the minimally-invasive surgical devices space with robot-assisted surgeries being in vogue. In this context, the first generation of surgical robots is being installed in a number of operating rooms globally.
Stocks to Watch Out For
We have picked three companies, which we believe can help tap the booming prospects of the minimally-invasive surgical devices market.
Intuitive Surgical, Inc. ISRG: This Zacks Rank #3 (Hold) company designs, manufactures and markets the da Vinci surgical system — an advanced robot-assisted surgical platform. This Mechatronic-based platform enables minimally-invasive surgery that helps avoid the trauma associated with open surgery. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company plans to expand the usage of da Vinci in general and thoracic surgery, colorectal surgery and hernia repair in the days to come.
Intuitive Surgical has an expected earnings growth rate of 14.1% for the current year.
Over the past three months, Intuitive Surgical has outperformed its industry. The stock has gained 15.4% against the industry’s 14.6% fall.
Medtronic plc MDT: This Zacks Rank #3 company has Minimally Invasive Therapies Group, formerly referred to as the Covidien Group following completion of the Covidien acquisition as one of the segments. The company offers ablation systems, acute care ventilation systems, brain and capnography monitoring systems along with a host of other products.
Medtronic has an expected earnings growth rate of 7.3% for the current year. The stock has delivered positive earnings surprises in all of the trailing four quarters, the average beat being 3.9%.
Over the past three months, Medtronic has outperformed its industry. The stock has risen 6.5% compared with the industry’s 4.6%.
NuVasive, Inc. NUVA: This Zacks Rank #3 company leads the global medical device spine market, focused on developing minimally-disruptive surgical products and procedurally-integrated solutions for the spine. The company’s principal product includes a minimally-disruptive surgical platform called Maximum Access Surgery (MAS). In the recent past, the company has launched XLIF Crestline, lateral ALIF and lateral MIS fixation.
NuVasive has an expected earnings growth rate of 28.3% for the current year.
Over the past month, NuVasive has outperformed its industry. The stock has gained 3.4% compared with the industry’s 0.2%.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
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