Sectors & IndustriesHealthcareMedical Instruments & Supplies
Best Medical Stocks to Buy Now (2026)
Top medical stocks in 2026 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best medical stocks to buy now. Learn More.

Industry: Medical Instruments & Sup...
B
Medical is Zen Rated B and is the 35th ranked industry out of 145 stock market industries
Learn how the Zen Ratings work
Ticker
Company
DD Score
Valuation Score
Financials Score
Forecast Score
Performance Score
Dividends Score
NEPH
NEPHROS INC
53
29
100
44
40
INFU
INFUSYSTEM HOLDINGS INC
45
43
86
22
30
KRMD
KORU MEDICAL SYSTEMS INC
28
0
71
22
20
EMBC
EMBECTA CORP
41
86
29
22
10
60
NVST
ENVISTA HOLDINGS CORP
33
14
71
44
0

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Medical Stocks FAQ

What are the best medical stocks to buy right now in Jan 2026?

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best medical stocks to buy right now are:

1. Nephros (NASDAQ:NEPH)


Nephros (NASDAQ:NEPH) is the #1 top medical stock out of 57 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Nephros (NASDAQ:NEPH) is: Value: C, Growth: C, Momentum: C, Sentiment: A, Safety: C, Financials: B, and AI: C.

Nephros (NASDAQ:NEPH) has a Due Diligence Score of 53, which is 24 points higher than the medical industry average of 29.

NEPH passed 17 out of 33 due diligence checks and has strong fundamentals. Nephros has seen its stock return 214.65% over the past year, overperforming other medical stocks by 245 percentage points.

Nephros has an average 1 year price target of $6.00, an upside of 21.46% from Nephros's current stock price of $4.94.

Nephros stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Nephros, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Infusystem Holdings (NYSEMKT:INFU)


Infusystem Holdings (NYSEMKT:INFU) is the #2 top medical stock out of 57 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Infusystem Holdings (NYSEMKT:INFU) is: Value: C, Growth: C, Momentum: C, Sentiment: A, Safety: C, Financials: A, and AI: C.

Infusystem Holdings (NYSEMKT:INFU) has a Due Diligence Score of 45, which is 16 points higher than the medical industry average of 29.

INFU passed 14 out of 33 due diligence checks and has strong fundamentals. Infusystem Holdings has seen its stock return 2.07% over the past year, overperforming other medical stocks by 33 percentage points.

Infusystem Holdings has an average 1 year price target of $14.50, an upside of 72.62% from Infusystem Holdings's current stock price of $8.40.

Infusystem Holdings stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Infusystem Holdings, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Koru Medical Systems (NASDAQ:KRMD)


Koru Medical Systems (NASDAQ:KRMD) is the #3 top medical stock out of 57 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Koru Medical Systems (NASDAQ:KRMD) is: Value: C, Growth: B, Momentum: B, Sentiment: A, Safety: C, Financials: C, and AI: A.

Koru Medical Systems (NASDAQ:KRMD) has a Due Diligence Score of 28, which is -1 points lower than the medical industry average of 29. Although this number is below the industry average, our proven quant model rates KRMD as a "A".

KRMD passed 9 out of 33 due diligence checks and has average fundamentals. Koru Medical Systems has seen its stock return 34.78% over the past year, overperforming other medical stocks by 66 percentage points.

Koru Medical Systems has an average 1 year price target of $6.00, an upside of 7.53% from Koru Medical Systems's current stock price of $5.58.

Koru Medical Systems stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Koru Medical Systems, 66.67% have issued a Strong Buy rating, 0% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the medical stocks with highest dividends?

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

1. Dentsply Sirona (NASDAQ:XRAY)


Dentsply Sirona (NASDAQ:XRAY) has an annual dividend yield of 5.31%, which is 3 percentage points higher than the medical industry average of 2.13%. Dentsply Sirona's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Dentsply Sirona's dividend has shown consistent growth over the last 10 years.

Dentsply Sirona's dividend payout ratio of -14.6% indicates that its high dividend yield might not be sustainable for the long-term.

2. Embecta (NASDAQ:EMBC)


Embecta (NASDAQ:EMBC) has an annual dividend yield of 4.88%, which is 3 percentage points higher than the medical industry average of 2.13%.

Embecta's dividend payout ratio of 36.6% indicates that its high dividend yield is sustainable for the long-term.

3. Baxter International (NYSE:BAX)


Baxter International (NYSE:BAX) has an annual dividend yield of 2.68%, which is 1 percentage points higher than the medical industry average of 2.13%. Baxter International's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Baxter International's dividend has not shown consistent growth over the last 10 years.

Baxter International's dividend payout ratio of -103% indicates that its dividend yield might not be sustainable for the long-term.

Why are medical stocks down?

Medical stocks were down -1.62% in the last day, and down -2.41% over the last week. Warby Parker was the among the top losers in the medical instruments & supplies industry, dropping -4.87% yesterday.

Shares of retail stocks are trading lower amid overall market weakness after President Trump posted on social media that the US imports for eight NATO members will face escalating tariffs, starting at 10% on February 1, which will climb to 25% on June 1. President Trump has recently escalated rhetoric about making Greenland a US territory.

What are the most undervalued medical stocks?

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued medical stocks right now are:

1. Embecta (NASDAQ:EMBC)


Embecta (NASDAQ:EMBC) is the most undervalued medical stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Embecta has a valuation score of 86, which is 66 points higher than the medical industry average of 20. It passed 6 out of 7 valuation due diligence checks.

Embecta's stock has dropped -34.03% in the past year. It has underperformed other stocks in the medical industry by -3 percentage points.

2. Haemonetics (NYSE:HAE)


Haemonetics (NYSE:HAE) is the second most undervalued medical stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Haemonetics has a valuation score of 43, which is 23 points higher than the medical industry average of 20. It passed 3 out of 7 valuation due diligence checks.

Haemonetics's stock has dropped -6.83% in the past year. It has overperformed other stocks in the medical industry by 24 percentage points.

3. Harvard Bioscience (NASDAQ:HBIO)


Harvard Bioscience (NASDAQ:HBIO) is the third most undervalued medical stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Harvard Bioscience has a valuation score of 14, which is -6 points higher than the medical industry average of 20. It passed 1 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates HBIO a Valuation Rating of "B".

Harvard Bioscience's stock has dropped -70.15% in the past year. It has underperformed other stocks in the medical industry by -39 percentage points.

Are medical stocks a good buy now?

41.46% of medical stocks rated by analysts are a strong buy right now. On average, analysts expect medical stocks to rise by 19.67% over the next year.

11.11% of medical stocks have a Zen Rating of A (Strong Buy), 20% of medical stocks are rated B (Buy), 48.89% are rated C (Hold), 13.33% are rated D (Sell), and 6.67% are rated F (Strong Sell).

What is the average p/e ratio of the medical instruments & supplies industry?

The average P/E ratio of the medical instruments & supplies industry is 229.77x.
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