3 Medical Device Stocks Giving Investors a Different Healthcare Play

Summary

When investors think of the health care sector, most imagine the stability of pharmaceutical giants or the high-risk/high-reward profile of up-and-coming clinical stage drug developers. Medical device companies operate within a unique ecosystem and are often easy to overlook. The fact that these firms have unique business models, revenue drivers, and innovation cycles may make them appealing as a supplement—or even an alternative—to better-known corners of the health care space. Investors seeking the advantages of companies that don't depend on the approval of blockbuster drugs, can more easily make incremental innovations, or can derive revenue from recurring procedures, may want to consider the companies below. These and other similar firms stand to benefit from growing specialized demand for procedures such as spine surgery, sleep apnea treatment, and stroke treatment.Get Globus Medical alerts:Sign Up Globus Grows Its Product Lineup and Revenue FollowsGlobus Medical Today$76.02 -0.98 (-1.27%) As of 10:09 AM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$51.79▼$101.40P/E Ratio17.70Price Target$103.75Globus Medical, Inc. NYSE: GMED is an $11-billion firm designing and building implantable devices and surgical instruments used to treat spinal disorders. The firm has been quietly thriving thanks to strong organic revenue growth and margin improvements: in Q1 2026, for instance, revenue grew by 27% year over year (YOY) to nearly $760 million and earnings per share (EPS) climbed to $1.12 from 68 cents. Both of these figures were solidly above analyst expectations. Management credits the growth to improving market share, operational discipline, stronger free cash flow, and the introduction of dozens of new products. The company's U.S. business in particular is thriving, having seen three consecutive quarters of at least 10% growth, but its international segment and enabling technologies business are also growing. The company's pr...