The medical devices industry is in recovery mode this year with the rescheduling of surgeries that were placed on hold during the height of the COVID-19 pandemic. Although the pace of recovery is expected to slow in the near term due to the resurgence of COVID-19 cases, impressive breakthroughs delivered by small-cap medical devices companies Varex Imaging (NASDAQ:VREX), Natus Medical (NTUS), Orthofix Medical (NASDAQ:OFIX), and IRadimed (IRMD) should drive their share prices higher. So, let’s pore over these names.Categorization of medical procedures as essential and non-essential to prioritize COVID-19 cases, along with supply chain constraints, have badly impacted the medical devices industry since the onset of the COVID-19 pandemic. However, with the strong vaccination drive this year, which is overwhelmingly responsible for gains in slowing the pandemic’s spread, the demand for advanced medical devices has been recovering with the rescheduling of several delayed surgeries.
The global medical devices market is expected to grow at a 5.2% CAGR to $671.49 billion by 2027.
While the resurgence of COVID-19 cases might slow the industry’s pace of recovery in the near term, expected long-term growth based on the innovative product pipelines of small-cap companies Varex Imaging Corporation (VREX), Natus Medical Incorporated (NTUS), Orthofix Medical Inc. (OFIX), and IRadimed Corporation (IRMD) should help their shares move higher in price. Each of these stocks is rated A (Strong Buy) in our proprietary POWR Ratings system.