Ventilator Stocks Next Big Thing In Coronavirus-Hit Market?
Zacks Investment Research | Mar 22, 2020 10:15PM ET
The crippling impact of the coronavirus outbreak in the United States and worldwide has resulted in a wide shortage of treatment options. Hence, MedTech giants as well as non-healthcare stalwarts are collectively bracing up to sail through these difficult times in terms of bringing better healthcare devices and services to the patients. If the coronavirus-led market bloodbath has spooked you, then these are the stocks that might help enrich your portfolio, given the demand spike the companies are about to witness in the days to come.
Let’s delve deeper.
Ventilators — Key Equipment of the Hour
The number of critical-stage coronavirus patients has been soaring for quite some time now. In the United States alone, there are 795 patients, at present, in this stage. Internationally, the number of serious-to-critically ill coronavirus patients is nearing 11,000. If we take the Chinese data as standard, the mortality rate of this stage is 61.5% (Going by a Fortune article , most ICUs currently have ventilators to meet demand of a regular flu season but do not have additional units in case of a demand surge. With the rapidly-spreading pandemic, experts are worried that such a situation might overwhelm hospitals, forcing doctors to implement triage systems, just like Italy is doing right now, to decide on who gets ventilation treatment.
In the wake of such difficult times, last week medical device stalwart Medtronic (NYSE:MDT) decided to more than double its capacity to manufacture and supply ventilators. Given the turbulence times, the company is also prioritizing high risk/high need areas for ventilator allocation on a weekly basis for efficient global distribution through supply chains. When all other major business segments of this Zacks Rank #3 (Hold) company are facing recessionary hurdles, Medtronic’s latest initiative seems strategic. This is anticipated to boost its Minimally Invasive Therapies Group revenues in the upcoming period.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.