5 Medical Info Systems Stock to Buy for a Stable Portfolio

The medical info systems industry is set to thrive in the second half of 2024 due to the growing demand for contactless services. The industry witnessed exponential growth during the pandemic era. Even in the post-pandemic period, remote healthcare, a paperless environment and distant treatment paved the way for digital services.

The medical info systems industry comprises companies that develop and market healthcare information systems. These companies offer software and hardware solutions to healthcare providers with secure access to real-time clinical, administrative and financial data in a time-efficient manner. Focus on patient satisfaction, security of patient data and  cost control has increased the need for big data, 3D printing, blockchain and artificial intelligence.

The medical sector is one of the major adopters of AI, which is currently being used to synthesize new compounds for drugs and create devices for more precise measurement and faster and more accurate diagnosis. One common application of AI has been in diagnostic settings, where it quickly and precisely detects image abnormalities that might be challenging for the human eye to spot.

Several medical device makers are also developing surgical robots with AI integration for complex and specialized procedures. Further, electronic health records, electronic medical records, predictive analytics and real-time alerting have been gaining prominence.

AI systems have been successful in multiple medical imaging use cases, such as detecting mitosis in breast cancer histology images, classifying skin cancer with dermatologist-level accuracy, diagnosing diabetic retinopathy from retinal fundus photographs and predicting cardiovascular risk factors from retinal fundus photographs.

Even though the pandemic is over, the need for contactless services is growing enormously. Within the medical information systems space, the telehealth and remote patient monitoring segments continue to grow at a fast pace.

The Zacks-defined Medical Info Systems Industry is currently in the top 25% of the Zacks Industry Rank. Since it is ranked in the top half of Zacks Ranked Industries, we expect the consulting services industry to outperform the market over the next three to six months.

Our Top Picks

We have narrowed our search to five medical info systems stocks that have strong growth potential for 2024. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries a Zacks Rank#1 (Strong Buy) or 2 (Buy).

The chart below shows the price performance of our five picks year to date.

Image Source: Zacks Investment Research

Hims & Hers Health Inc. HIMS operates a telehealth platform that connects consumers to licensed healthcare professionals in the United States, the United Kingdom, and internationally. HIMS offers a range of curated prescription and non-prescription health and wellness products and services available to purchase on its websites and mobile application directly by customers.

HIMS also provides prescription medication on a recurring basis and ongoing care from healthcare providers, over-the-counter drug and device products, cosmetics, and supplement products primarily focusing on general wellness, sexual health and wellness, skincare, and hair care.

Zacks Rank #1 Hims & Hers Health has an expected revenue and earnings growth rate of 41.9% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.6% over the last seven days.

Enovis Corp. ENOV operates as a medical technology company focused on developing clinically differentiated solutions worldwide. ENOV also manufactures and distributes medical devices that are used for reconstructive surgery, rehabilitation, pain management, and physical therapy. ENOV operates through the Prevention and Recovery, and Reconstructive segments.

Zacks Rank #2 Enovis has an expected revenue and earnings growth rate of 24.4% and 9.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the last 30 days.

Pulmonx Corp. LUNG is a commercial-stage medical technology company that provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases. LUNG offers Zephyr Endobronchial Valve, a solution for the treatment of patients with hyperinflation associated with severe emphysema, and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation.

LUNG also offers StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis offering information on emphysema destruction, fissure completeness, and lobar volume to identify target lobes for the treatment with Zephyr Valves.

Zacks Rank #2 Pulmonx has an expected revenue and earnings growth rate of 21.3% and 0.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 8.4% over the last 60 days.

Phreesia Inc. PHR provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. PHR's SaaS platform engages patients in their care and provides a modern, consistent experience, while enabling healthcare organizations to optimize their staffing, boost profitability and enhance clinical care.

Zacks Rank #2 Phreesia has an expected revenue and earnings growth rate of 17.9% and 53%, respectively, for the current year (ending January 2025). The Zacks Consensus Estimate for current-year earnings has improved 20.3% over the last 30 days.

Standard BioTools Inc. LAB provides instruments, consumables, reagents, and software services for researchers and clinical laboratories in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. LAB operates through two segments: Proteomics and Genomics.

LAB offers analytical systems, such as CyTOF XT System, a CyTOF XT mass cytometry system that performs automated high-parameter single-cell analysis using antibodies conjugated to metal isotopes, and Hyperion XTi imaging system, a spatial biology instrument.

LAB also provides genomics, such as X9 Real-Time PCR System, a real-time PCR analytical instrument including pre-processing steps for microfluidics-based workflows using (integrated fluidic circuit) IFCs, and IFC Controllers, a controller which is designed to work with IFC formats.

Zacks Rank #2 Standard BioTools has an expected revenue and earnings growth rate of 89.5% and 43.9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 23.3% over the last 60 days.

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