5 Discounted MedTech Stocks For A Healthy Portfolio
Zacks Investment Research | Sep 11, 2017 09:57PM ET
Since the Republicans have taken over, it has been quite a tumultuous phase for MedTech. The situation turned dramatic after President Trump took up the task to repeal Obamacare. After quite a few failed attempts, the Trump government resorted to the “skinny repeal” of Obamacare which failed to make any headway in the senate as well.
While the healthcare fraternity has been grappling with the developments at the Capitol Hill over the past one-and-a-half years, the MedTech industry has been content with the government’s policies which include the abolition of the Cadillac tax and the 2.3% MedTech tax.
Although the Cadillac tax has been postponed until 2026, the government has not come up with any concrete plan to suspend the MedTech tax yet.
Going by an article by Peter Sullivan (published in The Hill), the trade group for medical device companies is launching a campaign to push lawmakers to repeal ObamaCare’s tax on medical devices. The future of the MedTech fraternity thus hangs in the balance.
Strike When the Iron is Hot
Thanks to escalating political uncertainty, many MedTech stocks are trading at tantalizing discounts. The low valuations, however, provide investors the deal opportunity to pick high-potential stocks with attractive prospects. In the words of Warren Buffett, "I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful."
Our Screening Parameters
In order to help investors identify the ideal investment choices in the MedTech space, we have used the industry ’s 2.63.
Lantheus Holdings, Inc. PEG Ratio (TTM)
Owens & Minor, Inc. PE Ratio (TTM)
Masimo Corporation (NASDAQ:MASI) : Headquartered in Irvine, CA,Masimo designs, manufactures and sells noninvasive monitoring technologies globally. The stock carries a Zacks Rank #2 and Value Style Score of B. The company has a VGM Score of B. The Zacks Consensus Estimate for current-year earnings has been revised 5.3% up over the last 60 days.
Masimo Corporation Price
Amedisys Inc PEG Ratio (TTM)
PAREXEL International Corporation PEG Ratio (TTM)
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