The global medical devices market is growing quickly, aided by substantial investment in technological advancement and the development of smart solutions. And the growing prevalence of chronic diseases and an aging population are driving market demand. Recently, medical devices stocks Edwards (EW) and Integra (IART) were upgraded, and we think these stocks could be ideal bets now. So, let’s discuss.The global medical devices market was adversely impacted last year during the COVID-19 pandemic. However, the growing prevalence of chronic diseases and the emphasis on early diagnosis and treatment are driving the demand for medical devices back to pre-pandemic levels. Studies show that more than half of all U.S adults have at least one chronic disease, and the number is rising. An aging population, among other factors, is also driving the market.
In addition, the integration of advanced technologies like artificial intelligence (AI), 3D printing, and the development of other smart gadgets are positioning the industry for long-term growth. The global medical devices market is projected to grow at a 5.4% CAGR to $657.98 billion in 2028. And several companies are focusing on R&D to develop advanced devices to capitalize on the growing market.
Given this backdrop, we think recently upgraded medical devices stocks, Edwards Lifesciences Corporation (NYSE:EW) and Integra LifeSciences Holdings Corporation (IART), could be solid additions to one’s portfolio now. Last week, JPMorgan analyst Robbie Marcus upgraded EW from Neutral to Overweight with a price target of $140.00. And research analysts at JPMorgan Chase (NYSE:JPM) & Co. upgraded IART from an underweight rating to a neutral rating.