6 Med-Tech and Medical-Device Stocks to Buy
Health care, which makes up nearly 18% of American GDP, has long been a fruitful hunting ground for investors seeking growth. And medical-tech and medical-device stocks have always been particularly compelling niches.
Not only do these companies ride the coattails of inexorable health-care spending, but their commitment to research and development can create new industries that they can in turn dominate.
It's not an easy time right now, of course. The COVID-19 outbreak has taken a chunk out of every sector and almost every industry, with only a few "coronavirus stocks" enjoying any meaningful gains. Medical devices have at least been better than the market, which has declined by about 29% in this bear market so far, as measured by the S&P 500. But the iShares U.S. Medical Devices ETF (IHI) still has been cut to the tune of 25% in the same time frame.
That could provide investors with a chance to buy medical-device stocks and other med-tech plays at a significant discount, however. While their growth might be stunted in the short-term, their longer-term prospects are likely to improve again once the COVID-19 threat is contained - and a few are
