Skip to content

5 Best Medical Device Stocks to Buy in 2024

5 best medical device stocks
Nemanja Curcic

Summary: With the increasing global median age and cutting-edge advances in healthcare technology, the market for advanced medical systems and devices is expected to grow. The promising indications attract many investors to lucrative medical device stocks. This guide will list some of the best and explain how to buy them using a regulated brokerage like eToro.

Highly Rated Stock Trading & Investing Platform

  • Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

What are medical device stocks?

Medical device stocks represent shares in companies that develop, produce, and distribute advanced healthcare devices, services, and technologies, primarily within diagnostics, treatment, and patient care domains.

Medical device and technology companies are vital in healthcare systems worldwide, providing diagnostic imaging equipment, implantable devices, surgical tools, and sophisticated monitoring systems. To deal with complex conditions and an evolving health landscape, medical device companies strive to innovate, refine existing concepts, and develop novel solutions. Ultimately, their efforts improve patient outcomes and enhance healthcare delivery globally.

On top of this, rising demand for healthcare technology solutions makes medical device companies and their stocks an increasingly lucrative opportunity for growth-oriented investors. 

5 best medical device stocks to invest in 2024

We have selected the five best medical stocks based on their historical value, fiscal performance, prospects, and market capitalization. These include:

All five of these medical device stocks are available on eToro.

Highly Rated Stock Trading & Investing Platform

  • Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

1. Intuitive Surgical (ISRG)

Intuitive Surgical, Inc. (Nasdaq: ISRG) is a multinational corporation and a global leader in pioneering robotic products developed to improve minimally invasive clinical surgery, represented by its landmark device, the da Vinci surgical system.

5 Best Medical Device Stocks: Intuitive Surgical homepage screenshot
Intuitive Surgical homepage screenshot. Source: intuitive.com

Based in California, Intuitive Surgical is devoted to improving clinical outcomes and life-improving healthcare. Its da Vinci systems have participated in more than 12 million procedures globally. Furthermore, ISRG is a NASDAQ-100 and S&P 500 indices component. 

Read our “How to Buy Intuitive Surgical Stock” guide for detailed insights into investing in this medical device stock.

ISRG stock price today


2. Stryker Corporation (SYK)

Stryker Corporation (NYSE: SYK) is an American medical technology company dedicated to developing vanguard devices in orthopedics, neurotechnology, and MedSurg. The company’s reputable portfolio includes joint replacements, neurosurgical and spinal devices, and endoscopic and communications systems.

5 Best Medical Device Stocks: Stryker Corporation homepage screenshot.
Stryker Corporation homepage screenshot. Source: stryker.com

Headquartered in Michigan, Stryker Corporation offers services across over 75 countries, with more than 130 million helped patients annually. Its stock, SYK, is an S&P 500 component.

For more information about investing in this medical technology company, read our “How to Buy Stryker Corporation Stock” guide.

SYK stock price today


3. Abbott Laboratories (ABT)

Abbott Laboratories (NYSE: ABT) is a prominent American healthcare technology company dealing in multiple domains of the medical industry, including drugs, nutrition, and various medical products.

5 Best Medical Device Stocks: Abbott Laboratories homepage screenshot.
Screenshot of Abbott Laboratories’ homepage. Source: abbott.com

As one of the largest and oldest healthcare companies, Abbott Laboratories owns multiple innovative medical device patents, including diagnostics systems, cardiovascular devices, and diabetes care. The company has various household medical device brands in its portfolio, such as FreeStyle Libre, MitraClip, and BurstDR Technology.  Its stock, ABT, is a component of the S&P 100 and S&P 500 indices. 

Consider our “How to Buy Abbott Laboratories Stock” guide for a detailed guide to investing in this medical device stock.

ABT stock price today


4. InMode (INMD)

InMode (Nasdaq: INMD) is a leading medical technology company focused on innovative aesthetics and medical procedures. The company has built a reputation for its cutting-edge systems, notably radiofrequency-based devices used in cosmetic and medical operations. 

5 Best Medical Device Stocks: InMode homepage screenshot.
InMode homepage screenshot. Source: inmodemd.com

The company’s technological solutions offer effective and minimally invasive procedures, gaining popularity with practitioners and patients across multiple categories of surgery, such as plastic surgery, gynecology, dermatology, ENT’s, and ophthalmology. 

Check our “How to Buy InMode Stock” guide for more information on investing in this prominent medical device company.

INMD stock price today


5. Johnson & Johnson (JNJ)

Johnson & Johnson (NYSE: JNJ) is a global corporation specializing in pharmaceuticals, consumer health, vaccines, and medical devices, with some of the world’s most recognized medical device brands in its extensive portfolio.

5 Best Medical Device Stocks: Johnson & Johnson homepage screenshot.

Known for scientific breakthroughs in surgical instruments, cardiovascular devices, and joint replacements, J&J is a healthcare powerhouse and one of the most valuable medical device companies. Having an extensive and diverse portfolio, the company is also an expert in the domains of oncology, immunology, neuroscience, and immunization. 

For a comprehensive look at investing in this health stock, read our “How to Buy Johnson & Johnson Stock” guide.

JNJ stock price today


Where to buy medical device stocks

Investors can easily buy medical device stocks in a few simple steps and within minutes. Our recommended choice for this is a brokerage platform called eToro. Enjoying widespread popularity with over 30 million registered accounts, it stands out for its robust features, including:

  • Commission-free stock and ETF trading; 
  • 2,000+ stocks from 17 exchanges;
  • Fractional shares available;
  • Charting tools;
  • User-friendly platform.

Highly Rated Stock Trading & Investing Platform

  • Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Pros and cons of buying medical device stocks

Pros

Pros

  • Aging population: The rising median age in many developed countries tends to create demand for medical devices as older people usually require more healthcare services and devices;
  • Technological innovation: Medical device companies occupy the forefront positions of technological innovation in healthcare. Buying medical device stocks exposes investors to cutting-edge medical developments, which can potentially be very profitable;
  • Regulatory approval: Once regulatory bodies approve a medical device, it virtually prevents entry for competitors due to patents and the general specifics of the process. This privileged status ensures a degree of protection for the companies in this sector;
  • Stable industry: Healthcare, in general, is considered a defensive sector. People require medical services regardless of economic conditions, providing a level of stability compared to more cyclical industries;
  • Global market: Medical device companies listed here have an international range of operations, allowing investors to benefit from multiple different markets and potentially reduce the risk associated with regional economic fluctuations.
Cons

Cons

  • Regulatory risks: Strict regulatory oversight governs the medical device industry. Hurdles, delays, and rejections in the approval process for new medical devices can significantly reduce a company’s financial performance;
  • Research and development costs: New medical devices usually incur extensive research and development costs. Furthermore, there are no guarantees that the research will yield a market-ready product. In case of failure, these companies can face massive financial challenges;
  • Competition: The medical device industry is fiercely competitive, with a plethora of companies vying for market share. Failing to stay ahead of competitors in terms of innovation and market positioning can lead to substantial downturns in performance;
  • Global market relations: While healthcare is considered a defensive sector, it is not entirely independent of economic downturns. Challenges in the global economy can impact healthcare budgets and consumer spending on medical devices;
  • Healthcare dependency: Changes in healthcare policies, reimbursement rates, or government regulations can significantly impact medical device companies’ financial performance.

For additional investments in the medical device sector, consider the following articles:

Furthermore, you might be interested in some prominent healthcare stocks in general. In that case, read the following guides:

Common mistakes to avoid when investing in medical device stocks

Make sure to avoid these common investing mistakes:

  • Lack of research: Research these medical device stocks in detail, along with the general state of the healthcare technology sector, before investing;
  • Lack of strategy: Set your goals before you spend any money;
  • Staking everything on one asset: Always diversify your portfolio;
  • Falling prey to scams: Avoid illegal platforms and suspicious deals;
  • Fear of missing out: If the numbers do not add up, do not make the investment: it is better to miss out than lose money.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

FAQs about investing in medical device stocks

What are medical device stocks?

Medical device stocks represent shares in companies that develop, produce, and distribute advanced healthcare devices, services, and technologies, primarily within diagnostics, treatment, and patient care domains.

Do medical device stocks pay dividends?

Certain medical device stocks pay dividends, including Johnson & Johnson (div. yield 2.93% as of January 2024), Abbott Laboratories (div. yield 1.93% as of January 2024), and Stryker Corporation (div. yield 1.02% as of January 2024).

How do I invest in medical device stocks?

Investors can invest in medical device stocks just like in any publicly traded company; you must register an account with a regulated online brokerage like eToro, transfer some funds, and buy the shares.

What are the best medical device stocks?

Our selection of best medical device stocks to invest in right now includes Intuitive Surgical (Nasdaq: ISRG), Stryker Corporation (NYSE: SYK), Abbott Laboratories (NYSE: ABT), InMode (Nasdaq: INMD), and Johnson & Johnson (NYSE: JNJ).

Highly Rated Stock Trading & Investing Platform

  • Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related guides

Contents