4 Healthcare Stocks Rising More Than 50% in 2024 With Room to Grow

The Zacks Medical space comprises a diversified set of players, ranging from health insurers, hospitals and nursing homes to medical device companies. With a few days left for 2024 to conclude, factors such as a strong membership base, rising patient volumes, resumption of elective procedures, continued incidence of mental health issues and technology advancements played a pivotal role in shaping the performance of the sector so far this year. However, the persistence of inflationary challenges continued to inflict adversities on the sector’s performance in the form of escalating healthcare costs.Underlying Trends of the Medical SectorHealth insurers are increasingly designing affordable health plans and expanding their reach into underserved U.S. communities facing limited access to care. These plans are frequently enhanced with attractive features, driving contract wins and renewals with federal and state authorities. Such agreements support membership growth and increase premiums, the primary revenue source for health insurers. Additionally, the aging U.S. population is expected to sustain robust demand for Medicare plans in 2025.Healthcare facility operators benefit from higher patient volumes on the resumption of deferred elective procedures. This trend is expected to bring more patients to surgery centers, lead to a rise in elective surgeries and therefore, improve inpatient occupancy levels. The growing need for specialized rehabilitative care to help patients recover from chronic illnesses and injuries has driven revenue growth for companies offering inpatient rehabilitation services. Similarly, operators of behavioral health and psychiatric hospitals have benefited from the rising prevalence of mental health issues among Americans.However, rising healthcare costs, compounded by inflation, remain a concern. Inflation has also disrupted medical supply chains and increased labor costs, leaving healthcare providers grappling with operational challenges. The medical device industry has encountered considerable challenges this year, particularly in the U.S. and European markets. These difficulties have been due to regulatory hurdles, supply-chain disruptions and geopolitical tensions, which have significantly altered the industry landscape. Originally sparked by the COVID pandemic, global supply-chain disruptions continued throughout 2024. Escalating raw material costs and semiconductor shortages have severely impacted device production. Additionally, inflation in the United States and Europe has exacerbated the situation, driving up operational expenses and squeezing profit margins.The Zacks Medical sector has declined 6% year to date against the S&P 500’s 25.3% increase. Image Source: Zacks Investment ResearchNevertheless, the medical sector's participants remain active in mergers and acquisitions to enhance capabilities, diversify their portfolios, expand customer bases and strengthen their global presence. Strong financial positions enable them to pursue these growth strategies.Amid the ongoing wave of digitization and the convenience it brings, healthcare companies continue to invest heavily in telehealth services. Despite the associated expenses linked with such technology investments, these initiatives are expected to generate consistent revenue streams and be beneficial for healthcare providers in the long term.Four Healthcare Stocks to Watch Before 2024 EndsGiven the backdrop, we have selected four medical stocks, Doximity, Inc. DOCS, Boston Scientific Corporation BSX, LeMaitre Vascular, Inc. LMAT and Globus Medical, Inc. GMED, that offer a mix of stability and growth potential that investors can leverage heading into 2025. While no investment is without risks, these companies are well-positioned to deliver strong returns. Each of these companies sports either a Zacks Rank #1 (Strong Buy) or carries a Zacks Rank #2 (Buy), witnessed positive earnings estimate revisions for 2025 and gained more than 50% on a year-to-date basis. You can see the complete list of today’s Zacks #1 Rank stocks here.Doximity: Headquartered in California, the Zacks Rank #1 company capitalizes on growth opportunities through strategic acquisitions, robust adoption of AI-powered productivity solutions and increasing monetization of telehealth and patient-facing tools, which enhance its service offerings and customer engagement. Additionally, its leadership in digital networking among healthcare professionals positions it as the preferred partner for organizations aiming to connect with this audience, driving sustained demand for its services and reinforcing its long-term growth trajectory. The Zacks Consensus Estimate for DOCS’ fiscal 2025 earnings is pegged at $1.14 per share, indicating 20% year-over-year growth. It has witnessed eight upward estimate revisions in the past 60 days against none in the opposite direction. Doximity’s earnings surpassed estimates in each of the last four quarters, the average  surprise being 22.12%. Its shares have surged 107.5% year to date.Average Broker Recommendation: 2.40Doximity, Inc. Price and EPS Surprise Doximity, Inc. price-eps-surprise | Doximity, Inc. QuoteBoston Scientific: The Massachusetts-based company benefits from robust international expansion. BSX’s diversified portfolio and innovative technologies, such as the WATCHMAN device and FARAPULSE PFA system, are gaining global traction, supported by strategic approvals in Japan and China. Strong MedSurg market share gains in Endoscopy and Urology, coupled with value-adding acquisitions like Silk Road Medical and Axonics, further bolster its position. Additionally, the growing Electrophysiology market and new product launches provide significant growth potential for the Zacks Rank #2 company. The Zacks Consensus Estimate for BSX’s 2024 earnings is pegged at $2.46 per share, which indicates a year-over-year improvement of 20%. The consensus mark for 2025 earnings indicates further year-over-year growth of 12.7%. It has witnessed two upward estimate revisions for 2025 earnings in the past 30 days against none in the opposite direction. Boston Scientific’s earnings surpassed estimates in each of the last four quarters, the average surprise being 8.29%. Its shares have gained 55.4% year to date. Average Broker Recommendation: 1.26Boston Scientific Corporation Price and EPS Surprise Boston Scientific Corporation price-eps-surprise | Boston Scientific Corporation QuoteLeMaitre Vascular: Based in Massachusetts, LeMaitre Vascular is benefiting from expanding demand for vascular medical devices driven by an aging global population and the rising prevalence of chronic vascular diseases. This Zacks Rank #2 company leverages its global reach and diversified product portfolio to meet increasing needs in minimally invasive treatments. Additionally, advancements in healthcare infrastructure, growing adoption of technologically advanced devices and favorable reimbursement policies enhance market opportunities. Strategic acquisitions and consistent R&D investments further strengthen its competitive positioning. The Zacks Consensus Estimate for LMAT’s 2024 earnings is pegged at $1.94 per share, indicating 43.7% year-over-year growth. The consensus mark for 2025 earnings indicates further year-over-year growth of 11.3%. It has witnessed five upward estimate revisions for 2025 earnings in the past 30 days against none in the opposite direction. LeMaitre Vascular’s earnings surpassed estimates in each of the last four quarters, the average surprise being 10.10%. Its shares have gained 61% year to date. Average Broker Recommendation: 1.67LeMaitre Vascular, Inc. Price and EPS Surprise LeMaitre Vascular, Inc. price-eps-surprise | LeMaitre Vascular, Inc. QuoteGlobus Medical: The Pennsylvania-based company is capturing market share in the musculoskeletal solutions space, supported by its innovative portfolio of implantable devices, biologics and robotic technologies. Its merger with NuVasive has created a global leader with expanded international reach, enhanced synergies and a strengthened product offering for surgeons and patients. Industry trends, such as an aging population and increasing prevalence of musculoskeletal disorders, are further providing Globus Medical with an opportunity to capitalize on. With a robust pipeline, high R&D investment and consistent product launches, coupled with solid financial health and strong execution, the Zacks Rank #2 company is poised for continued success.The Zacks Consensus Estimate for GMED’s 2024 earnings is pegged at $2.97 per share, which indicates a year-over-year improvement of 28%. The consensus mark for 2025 earnings indicates further year-over-year growth of 16.3%. It has witnessed two upward estimate revisions for 2025 earnings in the past 30 days against one in the opposite direction. Globus Medical’s earnings surpassed estimates in each of the last four quarters, the average surprise being 17.65%. Its shares have gained 55.9% year to date. Average Broker Recommendation: 1.80Globus Medical, Inc. Price and EPS Surprise Globus Medical, Inc. price-eps-surprise | Globus Medical, Inc. QuoteZacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX): Free Stock Analysis Report LeMaitre Vascular, Inc. (LMAT): Free Stock Analysis Report Globus Medical, Inc. (GMED): Free Stock Analysis Report Doximity, Inc. (DOCS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks