GMED

In a comparison of two medical instruments stocks, Globus Medical (GMED) and AxoGen (AXGN), both holding a Zacks Rank #2 (Buy), GMED emerges as the superior value option. GMED has a forward P/E of 15.81 compared to AXGN's 73.46, a PEG ratio of 1.27 vs 1.42, and a P/B ratio of 2.22 vs 7.47, earning GMED a Value grade of B while AXGN received an F.

Globus Medical (GMED) reported strong Q2 2026 performance with musculoskeletal revenues rising 7.5% and base business sales up 10.9%. The company continues to gain market share through product innovation, with over 60 development projects underway.

However, foreign exchange volatility remains a concern. GMED maintains a debt-free balance sheet with $507.7 million in cash, supporting continued R&D and expansion investments.

The Medical Instruments industry is experiencing growth driven by generative AI adoption, with the AI-enabled medical devices market projected to expand at 19.9% CAGR through 2034. The industry carries a Zacks Industry Rank #86 (top 35%), though it has underperformed the S&P 500 and broader sector over the past year. Three stocks highlighted for potential outperformance are Globus Medical (Rank #1), Intuitive Surgical (Rank #2), and Thermo Fisher Scientific (Rank #2), all benefiting from AI integration, M&A activity, and strong earnings growth projections.

Zacks presents its investment research tools including Thematic Investment Screens covering 37 themes and the Zacks Rank stock-rating system combined with Style Scores (Value, Growth, Momentum, VGM). The article highlights how the Zacks Rank #1 stocks have averaged +23.86% annual returns since 1988, outperforming the S&P 500. Globus Medical (GMED) is featured as a #1 Strong Buy with attractive valuation metrics.

In a comparison of two medical instruments stocks, Globus Medical (GMED) emerges as the superior value option over Integer (ITGR). GMED holds a Zacks Rank of #1 (Strong Buy) with improving earnings outlook, while ITGR has a Zacks Rank of #3 (Hold). GMED also demonstrates better valuation metrics with a forward P/E of 15.18 versus ITGR's 20.74, and a PEG ratio of 1.22 compared to ITGR's 2.40, earning GMED a Value grade of B versus ITGR's C.

Solventum Corporation (SOLV) received FDA 510(k) clearance for combining its Restrata Synthetic Electrospun Fiber Matrix with V.A.C. Therapy for advanced wound care. The clearance strengthens SOLV's competitive position in the advanced wound care market, which is projected to reach $19.32 billion by 2030. The combined therapy may reduce dressing changes, streamline workflows, and support recurring revenue growth, though commercial impact depends on market adoption.

Inspire Medical Systems (INSP) shares gained 47.8% over three months as reimbursement uncertainty eases following new CPT code approvals and better-than-expected Q2 results. The company reported $200.6M in revenues and 14 cents adjusted EPS, while Project Horizon aims to redirect $30M in annualized savings toward growth initiatives. However, near-term sales remain disrupted and full execution risks persist.

Fresenius Medical Care (FMS) announced the U.S. launch of its FDA-cleared multiFiltratePRO System for treating acute kidney injury in critically ill patients. The integrated continuous kidney replacement therapy system automates regional citrate anticoagulation procedures in ICUs.

FMS stock gained 3.1% following the announcement. The company plans a phased U.S. rollout targeting growth in the hospital-based acute kidney care market, with the global CRRT market expected to grow at 8.2% CAGR through 2034.

DaVita (DVA) shares have gained 55.6% year-to-date, outpacing industry growth, driven by better operating execution, improved treatment-volume outlook, and growing confidence in value-based kidney care. The company reaffirmed 2026 guidance with expected earnings growth of 50.6% on 3.2% sales growth, supported by higher revenue per treatment and labor productivity gains. However, risks include insurance-mix headwinds from ACA subsidy losses, rising patient-care costs, and uncertain Medicare reimbursement policies.

Becton, Dickinson and Company (BDX) has gained 25.5% over six months, driven by successful portfolio realignment following its Life Sciences separation, strong earnings growth across high-growth platforms, and a major $19 billion U.S. manufacturing partnership agreement. The company raised its fiscal 2026 EPS guidance and returned $3.1 billion to shareholders, though it faces headwinds from tariffs, Alaris remediation, and China vaccine weakness.

Quest Diagnostics (DGX) reported Q3 2026 adjusted earnings of $3.00 per share (up 15.4% YoY) and revenues of $3.10 billion (up 10% YoY), both beating consensus estimates. The company raised full-year 2026 revenue guidance to $12.065-$12.105 billion and adjusted EPS outlook to $11.25-$11.35.

Despite strong results, DGX shares fell 1.6% in pre-market trading. Operating margins improved 40 basis points to 16.7%, driven by strong testing demand and organic requisition volume growth of 14.4%.

GE HealthCare announced five new global clinical collaborations to evaluate its StarGuide GX digital SPECT/CT system, a next-generation nuclear medicine imaging platform using advanced detector technology and NVIDIA computing. The system has received CE Mark approval in Europe but awaits FDA clearance in the US. The collaborations with leading institutions aim to advance quantitative imaging, dynamic imaging, and theranostics applications, supporting GEHC's competitive positioning in the growing precision oncology market.

Revvity announced the launch of Signals LabGistics, an AI-first software solution designed to connect and orchestrate scientific workflows across pharmaceutical, biotechnology, and specialty chemical companies. The platform converts natural-language instructions into coordinated workflows, integrates with existing lab systems, and will be available in major markets by December 2026. The announcement follows Revvity's recent acquisitions and product launches in diabetes screening and cell models.

Haemonetics shares surged 149.3% over the past year, significantly outperforming the industry and S&P 500. The company's Plasma and MedSurg segments showed solid growth in Q1 fiscal 2027, with Plasma revenues up 7.2% and MedSurg up 6%. HAE raised its fiscal 2027 revenue guidance to 5-8%, but faces headwinds from high debt levels ($1.17 billion long-term debt) and competitive pressures.

STERIS (STE) reported Healthcare segment sales growth of 8% to $1.05 billion in fiscal Q1, driven by services and consumables, while AST segment grew 6% to $297.6 million with improved growth expected in H2. The company faces margin pressures from $14 million in tariff costs and inflation, though strong demand persists in healthcare and life sciences markets. Management maintains fiscal 2027 EPS guidance at $11.12 with projected 7.3% revenue growth.

Medtronic is expanding its presence in high-growth markets including cardiac ablation (up 88%), robotics, and structural heart, while advancing the MiniMed separation. The company is building its hypertension business through the Symplicity Spyral renal denervation franchise with improved reimbursement and clinical evidence. However, Medtronic faces headwinds from tariffs, inflation, currency fluctuations, and unfavorable product mix that could pressure margins.

Becton, Dickinson and Company (BD) announced positive nine-month results from the AGILITY trial for its Revello Vascular Covered Stent in treating iliac artery disease. The trial met its primary endpoint with a 2.8% failure rate, 97.2% primary patency, and 98.3% freedom from clinically driven target lesion revascularization.

The device remains investigational in the U.S. with clinical follow-up continuing through 36 months. The global iliac stent market is projected to grow at a 6.5% CAGR through 2033.

Doximity announced an extension of its 13-year partnership with U.S. News & World Report, continuing to provide physician data for Doctor Finder, Patient Connect appointment-booking tools, and Expert Opinion surveys for hospital rankings. The partnership leverages Doximity's network of 3+ million medical professionals to connect patients with healthcare providers. Despite the news, DOCS stock declined 2.1% following the announcement and is down 32.4% year-to-date.

Prestige Consumer Healthcare (PBH) is building its consumer health brand portfolio through strategic acquisitions of Breathe Right and LaCorium, expected to contribute $190 million in fiscal 2027 revenues. The company benefits from strong e-commerce growth at double-digit rates and brand-building initiatives across established franchises.

However, intense competition, pricing pressure, and foreign exchange fluctuations pose ongoing challenges. PBH holds a Zacks Rank #3 (Hold) rating with an earnings yield of 9.4%, outpacing the industry average.

Glaukos Corporation (GKOS) shares have gained 36.8% over six months, outperforming its industry, driven by strong Q2 results with 50% revenue growth to $185.6 million, successful commercial expansion of Epioxa for keratoconus treatment, positive clinical data for iDose TR, and pipeline advances including a new retinal disease licensing agreement. The company raised its 2026 revenue guidance to $680-$700 million.