Healthcare technology stocks can be very lucrative investments. For evidence of that theory, take a look at the performances of three of the top names in the sector since August 2010. Specifically, diversified medical device maker Medtronic (NYSE:MDT) is up 150% since that time, while Intuitive Surgical (NASDAQ:ISRG), whose robots assist in surgeries, has soared more than ten-fold and Stryker (NYSE:SYK), which makes products used in conjunction with surgeries, has soared about six-fold.
And in recent years, all sorts of new, potent healthcare systems that will, in my view, make buying the best healthcare technology stocks even more lucrative. Among these new technologies, of course, are even more advanced robotics, artificial intelligence and detailed information about DNA.
Here are three extremely promising healthcare technology stocks for investors to watch.
Shockwave Medical (SWAV)
Shockwave Medical’s (NASDAQ:SWAV) system uses shockwaves to vanquish “deep calcium” from the arteries of individuals with heart disease.
As usual, SWAV posted stellar financial results recently, as it reported that its top line soared 72% in the first quarter to $161 million, while its earnings per share soared 164% year-over-year to $1.03. Moreover, the company increased its full-year revenue guidance by $40 million.
Also encouragingly, the company’s overseas revenue nearly doubled year-over-year, showing that its devices are being very well-received in foreign countries.
Further, according to a May 10 StreetInsider article, Johnson & Johnson (NYSE:JNJ) and Medtronic (NYSE:MDT) are weighing an acquisition of SWAV. So those who buy SWAV stock now could make a quick profit in a few months.
TransMedics (TMDX)
TransMedics’ (NASDAQ:TMDX) Organ Care System is utilized “for preserving organs used in the treatment of end-stage heart, lung, and liver failure.” The company says that its platform enables healthcare professionals “to replicate near-physiologic conditions for donor organs outside of the human body.” In other words, unlike the traditional “cold storage” approach, TMDX’s system seeks to emulate the conditions inside the human body.
TransMedics reported very strong Q1 results, as its top line soared 162% year-over-year, while its net loss fell sharply to $2.6 million from $10.6 million during the same period a year earlier. And impressively, TMDX raised its revenue guidance to $160 million to $170 million from its previous level of $138 million to $145 million. The firm now expects its top line to soar 71%-82% this year.
The company noted that, in Q1, the number of “liver and heart [transplant] cases” facilitated by its system rose sequentially “for the fifth consecutive quarter.”
Medpace (MEDP)
Medpace (NASDAQ:MEDP) provides services and technologies that help pharmaceutical companies conduct drug trials. Among its technologies are an electronic data capture system, wearables and a Clinical Trial Management system. Medpace also owns labs and provides imaging systems.
With many, new types of drugs being developed, such as personalized therapies and gene editing treatments, I believe that Medpace’s business is likely to grow tremendously going forward. And indeed, in the first quarter, its sales jumped 31% year-over-year to $434 million, while its net income jumped to $72.9 million from $61.3 million.
And on another positive note, Medpace increased its 2023 revenue guidance to $1.75 billion to $1.81 billion from $1.69 billion to $2.75 billion.
Since early 2022, Medpace has repurchased a great deal of its stock, buying “more than 15% of its shares outstanding” in the first nine months of last year and authorizing another $500 million of share repurchases last October.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
