In this article, we will discuss the 10 Best Medical Technology Stocks to Invest In.
Medical technology, or MedTech, companies ensure that the broader healthcare industry has the tools needed to diagnose, treat, monitor, or prevent medical conditions. In other words, the firms bridge the gap between healthcare and engineering. The MedTech space matured into a separate global industry in the early 1990s after shifting from a collection of small divisions and specialists of electronics giants. It has since then accelerated so fast that, according to Ernst & Young, the market was worth $584 billion in 2025. This was after posting top-line growth for seven successive years.
A separate report by Future Market Insights Inc valued the MedTech market at $549 billion as of 2025, just a few billions shy of EY’s. The researchers projected that this value would climb to $853 billion in 2035, which is an expansion rate of 4.5% over ten years. One of the key drivers of this growth that Future Market Insights Inc pointed to was the integration of artificial-intelligence and digital health solutions in medical technologies.
“AI-powered diagnostics, robotic-assisted surgeries, and remote monitoring devices are revolutionizing patient care by enhancing accuracy, improving efficiency, and reducing hospital stays,” the report reads in part.
For EY, although faced by a hostile global trade environment and turbulent macroeconomics, the global MedTech industry will continue to perform well. Just like Future Market Insights Inc, EY highlighted digital health and AI as the reason the industry will weather headwinds. Other factors are robust investment activity and surging revenues, noted EY.
Perhaps this explains why Bob Lang, chief options analyst at Explosive Options, believes healthcare will offer the most important off-ramp to investors who have grown fatigued with the broader tech sector. He said: “There are many investors right now that are looking at technology and saying, ‘how much longer, how much further is it gonna go?’”
“I think people are looking for yield, they’re looking for better-performing stocks and the healthcare sector is being one of them,” he added.
For Raj Ganguly of B Capital, energy and healthcare will offer the biggest investment opportunities in 2026. Interestingly, Ganguly sees AI being a major growth catalyst in the healthcare sector, particularly in MedTech. Ganguly argued that AI is spurring growth in MedTech because it is an efficiency multiplier across the entire value chain; that is, from initial R&D to commercial sales.
That said, this article highlights some of the notable names in MedTech that warrant investor attention.
Our Methodology
We used a multistep screening method to identify the best medical technology stocks for investment, which began with an initial pool curated from MedTech-focused ETFs, the Finviz stock screener, and notable financial media sources including CNN. Only pure-play MedTech stocks were considered. From this group, we narrowed in on leading names by analyzing Q3 2025 hedge fund ownership data from the Insider Monkey database, and also filtered for stocks with a minimum analyst-projected upside potential of 20% as of February 13, 2026. The final selection is ranked in ascending order by the number of hedge funds holding their shares.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Best Medical Technology Stocks to Invest In10. ResMed Inc. (NYSE:RMD)
Number of Hedge Fund Holdings: 43
Stock Upside: 27.97%
ResMed Inc. (NYSE:RMD) is one of the best medical technology stocks to invest in. On January 30, KeyBanc Capital Markets lifted its price target on ResMed Inc. (NYSE:RMD) to $302 from $299 and maintained an Overweight rating.
KeyBanc described ResMed’s second-quarter fiscal 2026 results as largely positive and supportive of its overall investment thesis for the company. The firm highlighted that ResMed’s Q2 revenue exceeded expectations, and that strength was concentrated in two core hardware segments: the Masks & Accessories and Devices businesses. This strength, the analysts said, drove the outperformance and even offset the underwhelming figures from the company’s Software as a Service (SaaS) segment.
The analysts also expressed encouragement about ResMed’s decision to raise the low end of its gross margin guidance for fiscal 2026. To them, this move is evidence of improving profitability expectations for the remainder of the year despite already maintaining a healthy gross profit margin of 60.69%.
On the same day, January 30, RBC Capital Markets raised its price target on ResMed to $314 from $311. The firm left the Outperform rating on the stock unchanged.
RBC Capital raised ResMed’s price target after strong quarterly results. The company posted double‑digit growth in revenue and earnings, beating estimates. RBC highlighted solid performance across markets, improving margins, and operating leverage. It kept an Outperform rating, citing ResMed’s earnings outlook, fair valuation, and potential shareholder returns.
ResMed Inc. (NYSE:RMD) develops and manufactures medical devices and digital health solutions for sleep apnea, chronic obstructive pulmonary disease, and other respiratory conditions. Its products include CPAP machines, masks, and cloud-connected software platforms that enable remote patient monitoring and management.
9. Globus Medical Inc. (NYSE:GMED)
Number of Hedge Fund Holdings: 46
Stock Upside: 26.12%
Globus Medical Inc. (NYSE:GMED) is one of the best medical technology stocks to invest in. On January 30, Needham upgraded its rating on Globus Medical Inc. (NYSE:GMED) from Hold to Buy and set the price target at $112. The upgrade followed Globus’s preliminary fourth-quarter revenue announcement, which Needham viewed as a positive signal for the company’s financial performance.
Needham’s analysis identified expanding EBITDA margins, including an estimated 20% EBITDA margin for Nevro, as a driver of improved earnings expectations for fiscal 2026. The firm expects margin expansion to potentially lift Globus’s earnings per share guidance by a high-single to low-double digit percentage, according to its internal assessment.
Alongside margins, Needham noted the possibility of improving organic revenue growth. The analysts believe this could lead to upside relative to Globus’s existing revenue guidance.
Separately, on January 26, TD Cowen initiated coverage on Globus with a Buy rating and set a $110 per share price target. TD Cowen acknowledged that Globus had faced significant negative sentiment, yet the analysts see potential for further outperformance. This will happen if investors continue to appreciate Globus’s longer-term earnings prospects, the analysts noted.
TD Cowen pointed out some of the areas where Globus still has opportunities for growth; these are progress within its Nevro business segment, expansion into international markets, and enabling technologies. Another supportive context that the firm pointed to is Globus’s historical share performance and financial strength.
Globus Medical Inc. (NYSE:GMED) develops and commercializes medical devices and technologies for musculoskeletal disorders. Its portfolio includes implantable devices, biologics, and surgical instruments used in spinal, orthopedic trauma, and joint reconstruction procedures.