Fundamentally, few sectors exist outside of the broad healthcare umbrella that offer what I would term permanent relevance. In this case, the concept of caring for other people is likely an eternal one. So, it makes sense to consider medical technology or MedTech stocks to buy.

As you know, the innovation ecosystem constantly moves in one direction: forward. It seems like every day, someone is talking about artificial intelligence or automated robotics or some invention in the connectivity arena. Enterprises are constantly pushing the boundaries of what is possible through technology. That’s fertile ground for the medical sector.

Subsequently, MedTech stocks to buy benefit handsomely from a large total addressable market. According to Future Market Insights, the underlying space reached a valuation of about $503.2 billion last year. By 2033, the ecosystem could be worth approximately $776.47 billion, implying a compound annual growth rate (CAGR) of 4.4%.

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While that’s not the greatest growth rate, the sector is also starting from a massive position. Therefore, the future for MedTech stocks to buy appears to be a bright one.

Abbott Laboratories (ABT)

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One of the most trusted names among MedTech stocks to buy, Abbott Laboratories (NYSE:ABT) along with its subsidiaries discovers, develops, manufactures and sells healthcare products worldwide. It also provides generic pharmaceuticals for the treatment of multiple diseases and conditions, such as pancreatic exocrine insufficiency and irritable bowel syndrome. This flexibility should help Abbott rise above the ebb and flow of the market.

Financially, Abbott doesn’t exactly offer a stellar performance. However, it’s a consistent player. Between the second quarter of 2023 to Q1 2024, the company’s average earnings per share reached about $1.10. This print translated to an average earnings surprise – the magnitude by which a company exceeded analysts’ bottom-line projections – of 2.43%.

During the trailing 12 months (TTM), ABT posted net income of $5.61 billion or earnings of $3.21 per share. Sales during the period reached $40.33 billion. For fiscal 2024, analysts anticipate EPS to rise 4.3% to land at $4.63. On the top line, sales may see a 4.1% rise to $41.75 billion. Lastly, the company offers a forward yield of 2.1%.

InMode (INMD)

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Based in Israel, InMode (NASDAQ:INMD) is one of the smaller but promising ideas among MedTech stocks to buy. Presently, it carries a market capitalization of $1.59 billion after dropping about 19% since the start of the year. InMode designs, develops, manufactures and markets minimally invasive aesthetic medical products. The technology is based on its proprietary radio frequency platform.