Although the medical devices industry faced unprecedented challenges presented by the COVID-19 pandemic last year, it has bounced back this year thanks to increasing immunization rates. A recovery in demand for elective and essential surgical procedures, and rapid innovations, have bolstered the industry's growth potential. As such, we think that medical devices stocks Hill-Rom (NYSE:HRC) and Integra LifeSciences (IART)—which are rated A in our proprietary stock-rating system—could be solid additions to one’s watchlist.Like most industries, the market for medical devices suffered a painful blow last year from the effects of the COVID-19 pandemic. However, increased governmental support to strengthen the industry, coupled with mass vaccination rates that have brought COVID-19 under control, has helped the medical devices industry rebound.
Rapid advancements in artificial intelligence (AI) technology, remote monitoring, and connected devices have allowed medical device companies to efficiently respond to a growing demand for crucial equipment. In addition, the increasing prevalence of chronic diseases and growing demand for devices used in elective procedures, such as knee replacement surgeries and cosmetic surgeries, are expected to drive growth for medical devices suppliers. Indeed, the global medical devices market is expected to reach $767.68 billion by 2027, growing at a 6.1% CAGR.
Given this backdrop, we believe medical device makers Hill-Rom Holdings Inc . (HRC) and Integra LifeSciences Holding Corporation (IART) are well-positioned to benefit based on their solid fundamentals and sustained focus on innovation. Both stocks have been rated A by our proprietary POWR Ratings system.