Sectors & IndustriesHealthcareMedical Devices

Best Medical Device Stocks to Buy Now (2023)

Top medical device stocks in 2023 ranked by overall Zen Score. See the best medical device stocks to buy now, according to analyst forecasts for the medical devices industry.

According to Zen Score, the 3 best medical equipment stocks to buy right now are:

Inmode (NASDAQ:INMD) is the top medical device stock with a Zen Score of 71, which is 44 points higher than the medical device industry average of 27. It passed 23 out of 33 due diligence checks and has strong fundamentals. Inmode has seen its stock lose -35.73% over the past year, underperforming other medical device stocks by -15 percentage points.

Inmode has an average 1 year price target of $40.25, an upside of 64.02% from Inmode's current stock price of $24.54.

Inmode stock has a consensus Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Inmode, 25% have issued a Strong Buy rating, 25% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Semler Scientific (NASDAQ:SMLR) is the second best medical device stock with a Zen Score of 59, which is 32 points higher than the medical device industry average of 27. It passed 19 out of 33 due diligence checks and has strong fundamentals. Semler Scientific has seen its stock return 29.37% over the past year, overperforming other medical device stocks by 50 percentage points.

Insulet (NASDAQ:PODD) is the third best medical device stock with a Zen Score of 54, which is 27 points higher than the medical device industry average of 27. It passed 19 out of 33 due diligence checks and has strong fundamentals. Insulet has seen its stock lose -37.6% over the past year, underperforming other medical device stocks by -17 percentage points.

Insulet has an average 1 year price target of $240.42, an upside of 25.09% from Insulet's current stock price of $192.19.

Insulet stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 12 analysts covering Insulet, 50% have issued a Strong Buy rating, 25% have issued a Buy, 25% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 10 medical device stocks that have issued dividends in the past year, the 3 medical device stocks with the highest dividend yields are:

Medigus (NASDAQ:MDGS) has an annual dividend yield of 26.9%, which is 23 percentage points higher than the medical device industry average of 4.14%.

Medigus's dividend payout ratio of -9.8% indicates that its high dividend yield might not be sustainable for the long-term.

Medtronic (NYSE:MDT) has an annual dividend yield of 3.43%, which is -1 percentage points lower than the medical device industry average of 4.14%. Medtronic's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Medtronic's dividend has shown consistent growth over the last 10 years.

Medtronic's dividend payout ratio of 89% indicates that its dividend yield is sustainable for the long-term.

Smith & Nephew (NYSE:SNN) has an annual dividend yield of 2.84%, which is -1 percentage points lower than the medical device industry average of 4.14%. Smith & Nephew's dividend payout is not stable, having dropped more than 10% ten times in the last 10 years. Smith & Nephew's dividend has not shown consistent growth over the last 10 years.

Smith & Nephew's dividend payout ratio of 150% indicates that its dividend yield might not be sustainable for the long-term.

Medical device stocks were up 1.76% in the last day, and up 1.87% over the last week.

We couldn't find a catalyst for why medical device stocks are up.

Based on WallStreetZen's Valuation Score, the 3 most undervalued medical device stocks right now are:

Inmode (NASDAQ:INMD) is the most undervalued medical device stock based on WallStreetZen's Valuation Score. Inmode has a valuation score of 100, which is 84 points higher than the medical device industry average of 16. It passed 7 out of 7 valuation due diligence checks.

Inmode's stock has dropped -35.73% in the past year. It has underperformed other stocks in the medical device industry by -15 percentage points.

Nuwellis (NASDAQ:NUWE) is the second most undervalued medical device stock based on WallStreetZen's Valuation Score. Nuwellis has a valuation score of 71, which is 55 points higher than the medical device industry average of 16. It passed 5 out of 7 valuation due diligence checks.

Nuwellis's stock has dropped -96.01% in the past year. It has underperformed other stocks in the medical device industry by -75 percentage points.

Medtronic (NYSE:MDT) is the third most undervalued medical device stock based on WallStreetZen's Valuation Score. Medtronic has a valuation score of 57, which is 41 points higher than the medical device industry average of 16. It passed 4 out of 7 valuation due diligence checks.

Medtronic's stock has gained 0.93% in the past year. It has overperformed other stocks in the medical device industry by 22 percentage points.