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3 Medical Info Systems Stocks to Buy as Stargate AI Drives Industry Prospects
ENOVEnovis(ENOV) ZACKS·2025-01-23 17:21

Core Insights - The Medical Info Systems industry is rapidly expanding, driven by advancements in AI and telemedicine, with significant growth expected by 2025 due to new federal policies and projects like Trump's 500billionStargateinitiative[1][4].IndustryOverview−TheZacksMedicalInfoSystemsindustryincludescompaniesthatdevelophealthcareinformationsystems,providingsoftwareandhardwaresolutionsforreal−timeaccesstoclinical,administrative,andfinancialdata[3].−KeyplayerslikeOmnicellandAllscriptsaregeneratingsubstantialrevenuefromsoftwaresales,IToutsourcing,andmaintenancecontracts[3].MarketTrends−ThemedicaldevicemarketisprojectedtogrowataCAGRof29.9500 billion Stargate initiative [1][4]. Industry Overview - The Zacks Medical Info Systems industry includes companies that develop healthcare information systems, providing software and hardware solutions for real-time access to clinical, administrative, and financial data [3]. - Key players like Omnicell and Allscripts are generating substantial revenue from software sales, IT outsourcing, and maintenance contracts [3]. Market Trends - The medical device market is projected to grow at a CAGR of 29.9% from 2026 to 2029, driven by a patient-centric approach and increasing healthcare expenditure [2]. - The global AI in healthcare market is expected to reach 95.65 billion by 2025, enhancing diagnostics and patient monitoring through AI-powered tools [4]. - The smart healthcare products market was valued at 145.9billionin2023andisanticipatedtogrowto145.9 billion in 2023 and is anticipated to grow to 485.71 billion by 2032, at a CAGR of 12.78% [5]. Cybersecurity Concerns - The increasing interconnectivity of healthcare systems has raised cybersecurity risks, with notable incidents affecting companies like Henry Schein and Change Healthcare [6]. Industry Performance - The Zacks Medical Info Systems industry has underperformed the S&P 500 and the broader medical sector over the past year, with a decline of 6.6% compared to the sector's 4.4% drop [9]. Valuation Metrics - The industry is currently trading at a forward price-to-sales ratio of 5.63X, compared to the S&P 500's 5.51X and the sector's 2.86X [11]. Company Highlights - Enovis: A medical technology company with a Zacks Rank 2 (Buy), expected to see a 16.3% earnings improvement in 2024 and 14.3% growth in 2025 [14][15]. - Omnicell: Also holding a Zacks Rank 2, targeting revenues of 1.9billionto1.9 billion to 2 billion by 2025, with a CAGR of 14%-15% from 2021 to 2025 [17][18]. - Phreesia: Provides a SaaS-based platform, enabling approximately 150 million patient visits in 2023, with a Zacks Rank 2 and a projected 56.2% earnings improvement in 2024 [20][21].