Sectors & IndustriesHealthcareMedical Instruments & Supplies

Best Medical Stocks to Buy Now (2022)

Top medical stocks in 2022 ranked by overall Zen Score. See the best medical stocks to buy now, according to analyst forecasts for the medical instruments & supplies industry.

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

Staar Surgical Co (NASDAQ:STAA) is the top medical stock with a Zen Score of 72, which is 39 points higher than the medical industry average of 33. It passed 24 out of 33 due diligence checks and has strong fundamentals. Staar Surgical Co has seen its stock lose -34.25% over the past year, underperforming other medical stocks by -14 percentage points.

Staar Surgical Co has an average 1 year price target of $94.75, an upside of 60.24% from Staar Surgical Co's current stock price of $59.13.

Staar Surgical Co stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 9 analysts covering Staar Surgical Co, 88.89% have issued a Strong Buy rating, 11.11% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Resmed (NYSE:RMD) is the second best medical stock with a Zen Score of 55, which is 22 points higher than the medical industry average of 33. It passed 21 out of 38 due diligence checks and has strong fundamentals. Resmed has seen its stock lose -9.46% over the past year, overperforming other medical stocks by 11 percentage points.

Resmed has an average 1 year price target of $263.80, an upside of 15.03% from Resmed's current stock price of $229.34.

Resmed stock has a consensus Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Resmed, 37.5% have issued a Strong Buy rating, 25% have issued a Buy, 37.5% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

West Pharmaceutical Services (NYSE:WST) is the third best medical stock with a Zen Score of 53, which is 20 points higher than the medical industry average of 33. It passed 20 out of 38 due diligence checks and has strong fundamentals. West Pharmaceutical Services has seen its stock lose -44.42% over the past year, underperforming other medical stocks by -24 percentage points.

West Pharmaceutical Services has an average 1 year price target of $283.33, an upside of 17.07% from West Pharmaceutical Services's current stock price of $242.02.

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

Out of 11 medical stocks that have issued dividends in the past year, the 3 medical stocks with the highest dividend yields are:

Utah Medical Products (NASDAQ:UTMD) has an annual dividend yield of 3.14%, which is 2 percentage points higher than the medical industry average of 1.2%. Utah Medical Products's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Utah Medical Products's dividend has shown consistent growth over the last 10 years.

Utah Medical Products's dividend payout ratio of 65.1% indicates that its dividend yield is sustainable for the long-term.

Baxter International (NYSE:BAX) has an annual dividend yield of 2.2%, which is 1 percentage points higher than the medical industry average of 1.2%. Baxter International's dividend payout is not stable, having dropped more than 10% one 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 -24.2% indicates that its dividend yield might not be sustainable for the long-term.

Dentsply Sirona (NASDAQ:XRAY) has an annual dividend yield of 1.54%, which is the same as the medical industry average of 1.2%. 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 -12.7% indicates that its dividend yield might not be sustainable for the long-term.

Medical stocks were up 2.28% in the last day, and up 3.77% over the last week.

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

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

Retractable Technologies (NYSEMKT:RVP) is the most undervalued medical stock based on WallStreetZen's Valuation Score. Retractable Technologies has a valuation score of 71, which is 43 points higher than the medical industry average of 28. It passed 5 out of 7 valuation due diligence checks.

Retractable Technologies's stock has dropped -74.76% in the past year. It has underperformed other stocks in the medical industry by -54 percentage points.

Zentek (NASDAQ:ZTEK) is the second most undervalued medical stock based on WallStreetZen's Valuation Score. Zentek has a valuation score of 71, which is 43 points higher than the medical industry average of 28. It passed 5 out of 7 valuation due diligence checks.

Utah Medical Products (NASDAQ:UTMD) is the third most undervalued medical stock based on WallStreetZen's Valuation Score. Utah Medical Products has a valuation score of 57, which is 29 points higher than the medical industry average of 28. It passed 4 out of 7 valuation due diligence checks.

Utah Medical Products's stock has dropped -20.29% in the past year. It has performed in line with other stocks in the medical industry.