Trump's return to the White House has introduced significant uncertainty for investors in the medical device industry. Major executive actions, including the U.S. withdrawal from the World Health Organization (WHO) and a freeze on federal regulatory activities, have sparked concerns among MedTech stakeholders. As investors await clarity, the initial environment under Trump 2.0 demands close monitoring of regulatory developments and adapting strategies to mitigate risks.
Be that as it may, sectors like health IT, telemedicine and digital health platforms are witnessing growth opportunities and a positive outlook. Here, we have picked four Medtech stocks that are set to benefit from the new administrative policies. These are Doximity DOCS, Omnicell OMCL, Embecta Corp. EMBC and Cencora, Inc. COR.
Executive Orders Seemingly Putting MedTech in a Tight Spot
Experts apprehend that exiting the WHO may reduce U.S. participation in global health initiatives, potentially limiting collaborative efforts in combating pandemics and advancing medical research. This withdrawal could also increase risks for medical device manufacturers that rely on international regulatory alignment and data-sharing facilitated by the WHO. This could potentially increase complexity in the regulatory approval process, costs and operational inefficiencies.
Moreover, the freeze on regulatory activity under the FDA and CMS until new administration appointees approve policies has placed critical decisions in limbo, delaying new product approvals and reimbursement processes. For medical device companies, this uncertainty could hinder innovation timelines and revenue projections. The potential for slowed progress in approving breakthrough therapies and devices may discourage investments in early-stage startups and clinical trials.
Silver Lining: Digital Health and Telemedicine Prospects Bright
The new administration repealed the former president’s Executive Order on AI safety. This strategic shift signals a strong positive impact on digital healthcare and telemedicine. Apparently, this will ease regulatory frameworks for these kinds of MedTech makers to test and deploy Gen AI applications more quickly, potentially giving U.S.-based firms a competitive edge in global AI markets. Meanwhile, telemedicine is expected to align with the administration's potential focus on improving healthcare access without expanding federal oversight.
Since the Presidential inauguration on Jan. 20, the Global Telemedicine & Digital Health ETF EDOC has shown steady growth.
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4 MedTech Stocks to Keep An Eye On
Doximity: This leading digital platform for U.S. medical professionals is of late experiencing a significant increase in the use of its clinical workflow tool. The company is gaining success while providing its verified clinical membership with digital tools built for medicine, enabling them to collaborate with colleagues, stay up to date with the latest medical news and research, manage their careers and on-call schedules, streamline documentation and administrative paperwork, and conduct virtual patient visits.
This Zacks Rank #3 (Hold) company’s expected earnings growth rate for the third quarter of fiscal 2025 and full-year fiscal 2025 are 13.8% and 20%, respectively. Over the past six months, Doximity stock has risen 98.1%.
Six-Month Price Performance
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Omnicell: As a major medication management solutions player, Omnicell is expected to garner success under Trump 2.0, banking on the company’s strategic investing in R&D efforts. This is expected to help drive positive medication management outcomes while ensuring advanced customer experience through a mature channel in four market categories. In terms of its financial roadmap, Omnicell targets to reach $1.9 billion-$2 billion of revenues by 2025, at a CAGR of 14%-15% through 2021-2025.
This Zacks Rank #2 (Buy) company’s expected earnings growth rate for full-year 2025 is 6.1%. Over the past six months, Omnicell stock has surged 44.2%.
Six-Month Price Performance
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Embecta: This global diabetes care company is expected to secure growth in 2025, banking on its advancement in providing solutions like pen needles, syringes, and safety injection devices, as well as digital applications to assist people with managing patient's diabetes.
EMBC’s fiscal 2025 expected earnings growth rate is pegged at 15.9%. The stock carries a Zacks Rank #1 (Strong Buy) at present. Over the past six months, Embecta stock has gained 12.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Six-Month Price Performance
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Cencora: This pharmaceutical services company focuses on providing drug distribution and related services to reduce healthcare costs and improve patient outcomes. Cencora is expected to benefit from generics growth in the long run. Strong organic growth rates in the U.S. pharmaceutical market, better patient access to care, improved economic conditions and population demographics, introduction of new innovative drugs like hepatitis C drugs, and a continued good brand pricing environment should drive growth in 2025.
COR’s fiscal 2025 expected earnings growth rate is pegged at 8.9%. The stock carries a Zacks Rank #2 at present. Over the past six months, Cencora stock has risen 9%.
Six-Month Price Performance
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Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpOmnicell, Inc. (OMCL) : Free Stock Analysis Report
Cencora, Inc. (COR) : Free Stock Analysis Report
Global X Telemedicine & Digital Health ETF (EDOC): ETF Research Reports
Doximity, Inc. (DOCS) : Free Stock Analysis Report
Embecta Corp. (EMBC) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
