2 MedTech Stocks That Are Screaming Buys in January

Core Insights - Medtech companies are leveraging innovative solutions to enhance patient care and health outcomes, driven by an aging population and increasing chronic diseases [1] - Breakthroughs in AI and robotics are creating new growth opportunities in the medtech sector [1] Medtronic - Medtronic is a leading medical-device company with a diverse portfolio including cardiac pacemakers and minimally invasive surgical tools [3] - The company is integrating AI capabilities into its products, such as the GI Genius for polyp detection and the MiniMed 780G insulin pump for diabetes care [4][5] - In fiscal Q2 2025, Medtronic reported a 5.3% revenue increase and an 8% rise in adjusted EPS in constant-currency terms, with management projecting 5% organic revenue growth for the full year [6] - Medtronic has received over 120 product approvals recently, indicating strong potential for market adoption [7] - The stock is currently trading 13% below its 52-week high with a 3.3% dividend yield, presenting an attractive entry point for investors [8] TransMedics Group - TransMedics Group has developed the first FDA-approved device for organ transplantation that extends preservation time, enhancing the chances of successful transplants [9] - The company anticipates tripling U.S. transplant cases from 1,000 in 2022 to an estimated 3,600 in 2024, with a target of 10,000 OCS transplants annually by 2028 [10] - Despite a recent 50% pullback from its 52-week high, TransMedics projects a revenue growth rate of 77%-79% for 2024 [11] - The company has achieved profitability and is expected to see further EPS gains in 2025, with catalysts including the launch of a next-generation OCS device [12] - The recent stock sell-off is viewed as a buying opportunity for long-term growth potential [13] Investment Outlook - Medtronic and TransMedics represent different strategies in the medtech sector, with Medtronic focusing on steady growth and dividends, while TransMedics aims for higher growth through innovation in organ transplantation [14]