With a global medical device market size of almost $680 billion, it's not surprising that many investors are interested in medical device stocks. And with that market expected to grow to more than $1.1 trillion by 2034, investor interest will almost certainly intensify.
In this article, we'll address exactly what medical device stocks are and identify some of the best stocks to buy. We'll also identify some of the top medical device exchange-traded funds (ETFs).
What are medical device stocks?
Medical device stocks are shares of companies that make and sell medical devices. Medical devices include any appliance, instrument, or machine used to diagnose, treat, or prevent a disease or condition. Software, implants, and chemical reagents used for those purposes are also considered medical devices.
If you think that's a broadly defined category, you're right. The World Health Organization estimates that there are roughly 2 million different kinds of medical devices marketed today.
The best medical device stocks in 2026
There are many great medical device stocks for investors to consider. Five of the best picks right now are Abbott Laboratories (ABT +1.12%), GE Healthcare (GEHC +1.99%), Intuitive Surgical (ISRG +4.67%), Johnson & Johnson (JNJ +0.24%), and Transmedics Group (TMDX +5.06%).
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Abbott Laboratories (NYSE:ABT) | $222.2 billion | 1.85% | Healthcare Equipment and Supplies |
| GE HealthCare Technologies (NASDAQ:GEHC) | $39.5 billion | 0.16% | Healthcare Equipment and Supplies |
| Intuitive Surgical (NASDAQ:ISRG) | $210.2 billion | 0.00% | Healthcare Equipment and Supplies |
| Johnson & Johnson (NYSE:JNJ) | $493.4 billion | 2.51% | Pharmaceuticals |
| TransMedics Group (NASDAQ:TMDX) | $4.5 billion | 0.00% | Healthcare Equipment and Supplies |
1. Abbott Laboratories
Abbott Laboratories is a large-cap company that makes medical devices, including continuous glucose monitoring (CGM) systems, defibrillators, heart failure monitoring systems, mechanical heart valves, pacemakers, and spinal cord stimulators. It also operates multibillion-dollar business segments that market established pharmaceuticals, diagnostics systems, and nutritional products.
NYSE: ABT
Key Data Points
The COVID-19 pandemic provided a huge boost to Abbott's fortunes, thanks to the company's rapid diagnostic tests. Although the company's overall revenue declined as demand for the tests waned, Abbott's base business remains strong. In particular, Abbott's FreeStyle Libre stands out as a key growth driver. It's the top-selling CGM device in the world, with soaring sales.
Income investors may find Abbott especially attractive. It's a Dividend King with 53 consecutive years of dividend increases.
2. GE Healthcare Technologies
GE Healthcare Technologies was spun off from General Electric in 2023. However, the large-cap company has been a leader in the medical device market for decades.
NASDAQ: GEHC
Key Data Points
The company has four business segments: imaging, advanced visualization solutions, patient care solutions, and pharmaceutical diagnostics. Medical imaging ranks by far as its biggest moneymaker, generating more than 40% of total revenue.
Like many medical device stocks, GE Healthcare should benefit from aging populations across the world. This tailwind could drive higher demand for the company's products as older individuals require more healthcare services.
GE Healthcare appears to be in a strong position to capitalize on this opportunity. It has a great track record of innovation and invests heavily in research and development -- more than $1 billion each year.
3. Intuitive Surgical
Intuitive Surgical is a large-cap company that pioneered the development of minimally invasive robotic surgical systems. The company launched its flagship da Vinci surgical system in 1999. Da Vinci was first approved for use in general laparoscopic surgery, but today it is used in a wide range of procedures.
NASDAQ: ISRG
Key Data Points
More than 17.6 million procedures have been performed using da Vinci systems, with almost 2.7 million of those procedures done in 2024. More than 11,000 da Vinci systems are installed in hospitals across the world.
Aside from a temporary slowdown during the COVID-19 pandemic, Intuitive Surgical's procedure volumes have grown steadily in recent years, boosting the company's recurring revenue from selling replacement instruments. In 2024, recurring revenue made up 84% of Intuitive's total revenue.
Aging trends should help Intuitive Surgical by driving increased demand for surgical procedures. The company also continues to enhance its robotic surgical systems so that they can be used for additional types of procedures.
4. Johnson & Johnson
Johnson & Johnson is a large-cap company that ranks as one of the world's biggest medical device makers. It markets medical devices that include catheters, implants, robotic surgical systems, surgical instruments, and wound closure products. J&J is also a top maker of prescription drugs.
NYSE: JNJ
Key Data Points
Acquisitions have played a big role in helping Johnson & Johnson grow its medical device business. In recent years, the healthcare giant has acquired several medtech companies, including Abiomed and Verb Surgical.
Johnson & Johnson spun off its consumer health unit into a separate publicly traded entity, Kenvue (KVUE -0.42%), in May 2023. The move should enable the company to deliver even stronger growth.
The stock remains a favorite for income investors, too. J&J has increased its dividend for an impressive 63 consecutive years, making it one of the top Dividend Kings in the market.
5. TransMedics Group
TransMedics Group is a relatively small company that markets devices that support the transportation of donor organs. Its Organ Care System (OCS) essentially keeps lungs, hearts, and livers functioning during transportation.
NASDAQ: TMDX
Key Data Points
How to invest in medical device stocks
Steps to take to invest in medical device stocks include:
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
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