{"id":73881,"date":"2023-10-18T04:46:55","date_gmt":"2023-10-18T08:46:55","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/baxter-and-5-more-medical-device-stocks-primed-to-bounce-back\/"},"modified":"2023-10-18T04:46:59","modified_gmt":"2023-10-18T08:46:59","slug":"baxter-and-5-more-medical-device-stocks-primed-to-bounce-back","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=73881","title":{"rendered":"Baxter and 5 More Medical Device Stocks Primed to Bounce Back"},"content":{"rendered":"
\n
<\/p>\n

<\/p>\n

<\/p>\n<\/figure><\/div>\n

The share prices of medical device companies have been circling the drain this year, as worries over the impact of the new obesity medicines weigh on the stocks.<\/p>\n

The
\n iShares U.S. Medical Devices ETF
\n (ticker:
\n IHI
\n ) is down about 13% on the year through Monday\u2019s close, while the
\n S&P 500
\n has climbed roughly 14%. Shares of some major players in the sector have fallen even farther:
\n Abbott Laboratories
\n (ABT) is down 16% this year, while
\n Baxter International
\n (BAX) has dived 37%.<\/p>\n

\n

Since the summer, investors have grown increasingly worried that the new weight-loss drugs from
\n Eli Lilly
\n (LLY) and
\n Novo Nordisk
\n (NVO) will bring on vast changes in Americans\u2019 health, which could undermine demand for many of the products sold by medical device companies.<\/p>\n

\u201cThe basic thought process here is that excess weight is the root of many ailments ranging from cardiac artery disease to sleep apnea,\u201d Mizuho analyst Anthony Petrone wrote in a Tuesday note. \u201cHence, if you solve for excess weight, demand for surgery could wane over time.\u201d<\/p>\n

Such fears have led to \u201c$370 billion total market cap destruction across U.S. MedTech,\u201d Petrone wrote.<\/p>\n

Despite the selloff, however, it remains unclear exactly how the new obesity drugs will affect medical device companies. In an interview with Barron\u2019s<\/em> on Tuesday,
\n Johnson & Johnson
\n (JNJ) CFO Joe Wolk noted that people with obesity may not be eligible for some procedures\u2014like knee and hip replacements\u2014but that they could become eligible with weight loss.<\/p>\n

\u201cIt remains to be seen, it\u2019s early days,\u201d Wolk said of the obesity drugs\u2019 impact on his company\u2019s medtech business.<\/p>\n

For investors, that uncertainty means an opportunity for stock-picking.<\/p>\n

To identify medical device stocks with room to grow, we screened the iShares U.S. Medical Devices ETF for companies with market values over $5 billion and with average analyst target prices implying the largest potential upside. The idea was to find the medical device stocks that analysts have the most faith in.<\/p>\n

The stocks that passed the screen all are down significantly in the current selloff. They include
\n Insulet
\n (PODD), which sells a wearable insulin management system, and
\n DexCom
\n (DXCM), which sells a wearable glucose monitor. Both products face a theoretical challenge from the new obesity medicines, which are also very effective at controlling Type 2 diabetes.<\/p>\n

\n Insulet\u2019s<\/span>
\n average analyst price target is roughly double its recent price, while
\n DexCom\u2019s<\/span>
\n average price target is roughly 75% above its recent price.<\/p>\n

Other stocks to pass the screen include Baxter,
\n Penumbra
\n (PEN),
\n ResMed
\n (RMD), and
\n Zimmer Biomet Holdings
\n (ZBH).<\/p>\n

<\/p>\n

<\/p>\n

\n
\n\n\n\n\n\n\n\n\n\n
Company \/ Ticker<\/th>\nRecent Price<\/th>\nYTD Change<\/th>\nMarket value (mil)<\/th>\nAverage price target<\/th>\nImplied potential upside<\/th>\n<\/thead>\n
Insulet \/ PODD<\/b><\/td>\n$135.91<\/td>\n-53.8%<\/td>\n$9,489.4<\/td>\n$271.37<\/td>\n99.7%<\/td>\n<\/tr>\n
DexCom \/ DXCM<\/b><\/td>\n78.95<\/td>\n-30.3<\/td>\n30,622.5<\/td>\n137.84<\/td>\n74.6<\/td>\n<\/tr>\n
Penumbra \/ PEN<\/b><\/td>\n200.09<\/td>\n-10.1<\/td>\n7,690.8<\/td>\n314.38<\/td>\n57.1<\/td>\n<\/tr>\n
Baxter International \/ BAX<\/b><\/td>\n31.98<\/td>\n-37.3<\/td>\n16,194.8<\/td>\n49.50<\/td>\n54.8<\/td>\n<\/tr>\n
ResMed \/ RMD<\/b><\/td>\n141.24<\/td>\n-32.1<\/td>\n20,774.3<\/td>\n202.04<\/td>\n43.0<\/td>\n<\/tr>\n
Zimmer Biomet Holdings \/ ZBH<\/b><\/td>\n105.05<\/td>\n-17.6<\/td>\n21,951.7<\/td>\n146.19<\/td>\n39.2<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: FactSet<\/p>\n<\/div><\/div>\n<\/p><\/div>\n

Write to Josh Nathan-Kazis at josh.nathan-kazis@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The share prices of medical device companies have been circling the drain this year, as worries over the impact of the new obesity medicines weigh on the stocks. The iShares U.S. Medical Devices ETF (ticker: IHI ) is down about 13% on the year through Monday\u2019s close, while the S&P 500 has climbed roughly 14%. […]<\/p>\n","protected":false},"author":1,"featured_media":73882,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-73881","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nBaxter and 5 More Medical Device Stocks Primed to Bounce Back | iFintechWorld<\/title>\n<meta name=\"description\" content=\"The share prices of medical device companies have been circling the drain this year, as worries over the impact of the new obesity medicines weigh on the\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=73881\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta 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