In 2024, the U.S. economy experienced significant fluctuations. Throughout the year, investors keen on investing in MedTech stocks witnessed the widespread adoption of artificial intelligence (AI) and robotic-assisted surgeries despite uncertainty surrounding the sector. The MedTech sector continued to be buoyed down by significant healthcare labor shortages and supply challenges stemming from worldwide geopolitical issues. Continued inflationary pressures also hindered the sector. However, the sector is more defensive than the other prime sectors, which has helped it stand tall despite a quite volatile year. 

Given its defensive nature, despite concerns regarding an increase in inflationary pressure in 2025 over tariff policies-related uncertainties, this sector should do well in the year ahead. The continued innovations in digital health, AI and personalized medicine are likely to provide significant growth prospects for this resilient sector. The increasing adoption of telehealth, remote monitoring and cloud management services are likely to be the other drivers of the broader MedTech sector. The recent favorable monetary policies and continued technological advancements are likely to buoy market watchers’ optimism.

Investors can turn their attention to a few MedTech stocks that have been holding steady, banking on their growth strategies, strong financials and R&D spree. Here, we have considered four fundamentally-sound stocks, Doximity, Inc. DOCS, Clover Health Investments, Corp. CLOV, ClearPoint Neuro, Inc. CLPT and Hims & Hers Health, Inc. HIMS, that have already crossed the century over the past year in terms of gains to investors. 

MedTech in 2024

The year 2024 was marked by various geopolitical tensions, including conflicts in Russia and Ukraine, Israel, Palestine and surrounding areas, tensions between the United States and China, potential energy shortages in Europe, and increased energy and transportation costs. These issues have significantly impacted the profitability of MedTech innovators. This apart, massive clinical staffing shortages dented the sector’s revenues significantly.

However, investors focusing on the MedTech sector are likely to witness some favorable trends, driven by the Fed’s latest rate cuts that should help improve the borrowing scenario. The assurance of a further easing of monetary policy in 2025 is also likely to be a catalyst to attract investors to the MedTech space. Another factor likely to boost investor optimism is the International Monetary Fund’s October 2024 World Economic Outlook. Per the report, after peaking at 9.4% year over year in the third quarter of 2022, headline inflation is now projected to decline to 3.5% by the end of 2025.

Another favorable trend likely to boost the MedTech sector is the widespread adoption of AI. Its predictive capabilities make it easier for doctors and other healthcare providers to detect and diagnose diseases more quickly. This gives them more time with patients, thus improving patients’ satisfaction and health outcomes. Per a report by Precedence Research, the global AI in the healthcare market was estimated at $26.69 billion in 2024 and is anticipated to reach $613.81 billion by 2034 at a CAGR of approximately 36.8%.

Given the ongoing AI revolution and continued innovations in patient care within the MedTech sector, investors should scoop up stocks that are fundamentally strong and have been providing impressive returns to investors.

4 Stocks to Focus on

As we progress into 2025, MedTech stocks are expected to thrive with increasing regulatory support. Key innovators in the sector are well-positioned for significant growth, driven by technological innovations and rising global demand for efficient healthcare solutions. 

Listed below are four companies that have the potential to generate steady returns for investors.

Doximity: Doximity, a renowned professional medical network for U.S. healthcare professionals, announced second-quarter fiscal 2025 results last month. The company witnessed a solid uptick in both its top and bottom lines and strength in clinical workflow tools. DOCS currently sports a Zacks Rank #1 (Strong Buy).

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For fiscal 2025, the Zacks Consensus Estimate for Doximity’s earnings per share implies an improvement of 20% over the comparable fiscal 2024 figure. Its current ratio stands at 7.2 compared with the industry’s 1.5. The stock has gained 107.1% over the past year against the industry’s 12.4% decline.

Clover Health: Clover Health, a physician enablement technology company focusing on bringing healthcare access to everyone on Medicare, is our next pick. Last month, the company announced its third-quarter 2024 results, wherein it recorded solid uptick in its insurance and total revenues. In October, the company announced the debut of its 2025 Medicare Advantage plan offerings in New Jersey. CLOV currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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For 2025, the Zacks Consensus Estimate for Clover Health’s loss per share implies an improvement of 41.7% over the comparable 2024 figure. Its P/S ratio stands at 1.05 compared with the industry’s 1.09. The stock has gained 223% over the past year against the industry’s 17.7% decline.

ClearPoint Neuro: Global device, cell and gene therapy-enabling company ClearPoint Neuro is our next pick. Last month, it reported its third-quarter 2024 results, wherein it recorded a solid uptick in its quarterly revenues and overall product revenues (including biologics and drug delivery). It also witnessed accelerated growth of the SmartFrame OR platform and ClearPoint Prism Laser Therapy System, contributing to record navigation and device revenues during the quarter. The same month, the company announced that the FDA had granted marketing authorization for the SmartFlow Neuro Cannula using the De Novo pathway. CLPT currently has a Zacks Rank #3 (Hold).

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For 2025, the Zacks Consensus Estimate for ClearPoint Neuro’s loss per share implies an improvement of 10.6% over the comparable 2024 figure. Its current ratio stands at 4.5 compared with the industry’s 2.4. The stock has gained 136.9% over the past year compared with the industry’s 4.2% rise.

Hims & Hers: The final company on our list is a key health and wellness player, Hims & Hers. The company, with a Zacks Rank #3, released its third-quarter 2024 results last month. It saw a solid uptick in its top and bottom lines and strength in both Online and Wholesale revenue channels. The increase in Subscribers, Monthly Online Revenue per Average Subscriber, Average Order Value and Net Orders during the quarter was also seen. The same month, the company announced that HIMS customers can now supplement their treatment plan with daily meal replacement bars and shakes to support them on their comprehensive weight loss journey.

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For 2025, the Zacks Consensus Estimate for Hims & Hers’ revenues imply an improvement of 40.9% over the comparable 2024 figure. It has an earnings yield of 2.1% against the industry’s negative yield. The stock has gained 205% over the past year against the industry’s 17.7% decline.

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