MMSI

The global oncology market is experiencing rapid growth due to rising cancer incidence, aging populations, and medical advances including immunotherapies, targeted medicines, and personalized vaccines. Major pharmaceutical companies are investing heavily in oncology R&D, with innovations in antibody-drug conjugates, bispecific antibodies, and next-generation immunotherapies. Three companies highlighted for oncology exposure are Pfizer, Merit Medical Systems, and Abbott Laboratories.

In a comparison of two Medical-Dental Supplies stocks, Henry Schein (HSIC) and Merit Medical (MMSI), both holding a Zacks Rank #2 (Buy), HSIC emerges as the superior value opportunity. HSIC has a lower forward P/E ratio of 15.72 compared to MMSI's 20.29, a better PEG ratio of 1.49 versus 1.94, and a lower P/B ratio of 2.46 versus 3.1. HSIC received a Value grade of A while MMSI received a C grade.

The Medical-Dental Supplies industry is positioned for growth driven by specialty care, biologics, GLP-1 therapies, and technology adoption, with the global market expected to reach $318.77 billion by 2031. However, tariffs, commodity inflation, and policy-driven pricing changes present headwinds. Five key stocks—McKesson, Cardinal Health, Becton Dickinson, Merit Medical Systems, and ProDex—are highlighted as well-positioned to capitalize on favorable industry trends through 2026.

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.

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.

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.

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.

BrightSpring Health Services (BTSG) has surged 67.3% year-to-date, outperforming broader markets, driven by strong growth in Specialty and Infusion revenues (up 32.7%) and Provider Services (up 29.1%). The company raised its 2026 outlook twice and improved leverage to 2.15x after divesting its Community Living business.

However, a $200M IRA impact on Home and Community Pharmacy and integration execution risks present headwinds. Analysts rate BTSG as a Hold.

QuidelOrtho Corporation (QDEL) shows strong Q2 2026 results with 21% adjusted EBITDA growth and expanding margins, supported by a diversified product portfolio and $50 million cost-saving initiatives through 2027. However, weak respiratory demand and overdependence on this segment pose risks, with the company adopting a cautious outlook for the 2026-2027 respiratory season.

Hims & Hers Health has launched Hers, its women's health platform, in Australia by rebranding Juniper from its Eucalyptus acquisition. The platform offers personalized care for hair regrowth, menopause, and weight management with 24/7 support. The expansion leverages Eucalyptus' local presence to strengthen brand recognition and recurring revenue in the growing Australian telehealth market, which is projected to grow at 18.2% CAGR through 2034.

Avantor (AVTR) reported strong second-quarter 2026 results with raised 2026 guidance, driven by VWR segment's return to 1.7% organic growth and BMP's double-digit order growth. However, BMP's continued 5.6% organic revenue decline and uneven demand recovery remain concerns. The company's Revival program shows execution improvements across commercial performance and operations.

AMN Healthcare is positioned for growth driven by rising healthcare staffing demand, technology investments, and higher-margin services, with Nurse and Allied revenues up 11% and Passport users growing 33%. However, persistent pricing competition, weakness in physician and technology segments, and earnings normalization pose significant headwinds to sustained performance.

DaVita (DVA) has rallied 55.8% year-to-date, driven by strong Integrated Kidney Care (IKC) platform growth, improving treatment volumes, and technology investments. The company beat Q2 expectations by $40 million in adjusted operating income and raised full-year guidance. However, persistent headwinds include declining revenue per treatment due to commercial-mix pressure (estimated $70 million impact in 2027), elevated G&A costs limiting operating leverage, and limited acquisition opportunities in a consolidated market.

Hims & Hers (HIMS) is accelerating growth through weight loss offerings, international expansion, and AI-enabled care, with U.S. revenues up 16% and international revenues surging 17-fold. However, the company faces headwinds from gross margin compression due to lower-margin branded products, negative cash flow from working capital requirements, and regulatory uncertainty around FDA peptide therapy approvals. The stock has gained 49.5% in six months but carries a Zacks Rank #3 (Hold) rating.

10x Genomics announced a multi-project research collaboration with Fred Hutchinson Cancer Center to advance single-cell and spatial technologies for biomarker discovery in bladder cancer and residual disease detection in acute myeloid leukemia. The company will utilize its Flex Apex and Xenium platforms to identify treatment response markers. Despite the strategic partnership, TXG stock declined 5.6% following the announcement, though it has gained 366.6% year-to-date.

Fresenius Medical Care (FMS) is improving profitability through its FME25+ transformation program and showing promise with 5008X dialysis system adoption and value-based care expansion. However, the company faces significant headwinds including U.S. treatment volume weakness, TDAPA reimbursement reversals expected to create a €50 million headwind in 2026, China regulatory pressure, and inflation concerns. The company maintains a Zacks Rank #3 (Hold) rating with consensus expectations for 2.7% revenue growth but 5.4% earnings decline in 2026.

Cardinal Health (CAH) expects Pharma profit growth of 8-11% in fiscal 2027 despite normalized demand, with other businesses projected to grow 15-18%. The company benefits from strong operational efficiency and specialty pharmaceutical growth, but faces headwinds from IRA pricing changes, moderating Specialty growth, and commodity cost pressures in its GMPD segment.

The Medical-Dental Supplies industry is positioned for growth driven by specialty care, biologics, GLP-1 therapies, AI automation, and aging demographics. The global medical supplies market is expected to reach $318.77 billion by 2031 with a 10% CAGR.

However, tariffs, commodity inflation, and pharmaceutical pricing changes remain headwinds. Key industry players show mixed near-term prospects with the industry trading at favorable valuations compared to broader markets.