Best mid-cap healthcare stocks to invest in 2025

The healthcare sector continues to present robust investment opportunities, particularly in the mid-cap space, where innovation meets scalability. These companies are at the forefront of providing cutting-edge medical solutions, expanding access to care, and driving significant growth in niche markets.

Telix Pharmaceuticals leads the way in radiopharmaceutical development, specializing in targeted radiation therapies for cancer diagnosis and treatment. Its innovative approach to precision medicine positions it strongly in the growing theranostics market. Krystal Biotech focuses on gene therapy treatments for rare skin diseases, leveraging its proprietary HSV-1-based delivery platform to create transformative treatments. Medpace operates as a leading clinical contract research organization, providing comprehensive clinical trial management services that enable pharmaceutical and biotech companies to navigate complex development processes.

These mid-cap healthcare firms represent a mix of technological advancement, service excellence, and market responsiveness, making them compelling investment options for 2025. Dive into our detailed analysis to see why they could thrive in your portfolio.

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Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in stocks mentioned in this article.

Now, let`s take a closer look at each of the companies:

  • Telix Pharmaceuticals (AX:TLX)

    Telix Pharmaceuticals specializes in the development of radiopharmaceuticals, which are drugs that use radioactive isotopes to diagnose and treat serious diseases, primarily in oncology. Founded in 2015 and headquartered in Melbourne, Australia, the company has expanded its global presence with operations in North America, Europe, and the Asia-Pacific region, positioning itself as a leader in precision medicine. Since its founding, Telix has demonstrated strong growth in the theranostics market, combining diagnostic imaging with targeted radiation therapy.

    Telix Pharmaceuticals focuses on developing targeted radiation therapies for cancers such as prostate, kidney, and brain tumors, using molecularly targeted radiation to detect and destroy cancer cells. The company`s flagship product, Illuccix, is an advanced imaging agent designed to improve the detection of prostate cancer, which has been approved in multiple countries. In addition to its commercial products, Telix has a strong pipeline of investigational therapies, aiming to revolutionize cancer treatment by combining innovative imaging and therapeutic solutions.

    Telix Pharmaceuticals financial statements

    Analysts recommendation: 1.29

    Financial Health

    • Return on assets (ROA): 2.08%
    • Return on equity (ROE): 3.14%
    • Return on investment (ROI): 1.36%

    Profitability

    • Gross margin: 53.94%
    • Operating margin: -0.3%
    • Net profit margin: 1.63%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 0.04
    • EPS estimate (next quarter): 0.23
    • EPS growth (this year): -32.63%
    • EPS growth (next year): 206.46%
    • EPS growth (next 5 years): 42.88%
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): 192.28%
    • Sales growth (quarter-over-quarter): 58.9%

    💡 Why invest in Telix Pharmaceuticals?

    Like a precision-guided missile targeting cancer cells, Telix operates at the cutting edge of theranostic medicine where diagnosis meets treatment:

    • Theranostic Leadership: Telix pioneers the rapidly growing theranostics market, combining diagnostic imaging with targeted radiation therapy to create personalized cancer treatments that offer competitive advantages.
    • Commercial Success: The company`s flagship product Illuccix has achieved regulatory approval in multiple countries for prostate cancer imaging, generating revenue streams and validating technology platform viability.
    • Pipeline Diversification: Telix develops radiopharmaceutical solutions for various cancer types including prostate, kidney, and brain tumors, reducing dependency on single products and expanding addressable market opportunities.
    • Global Operations: With established operations across Australia, North America, Europe, and Asia-Pacific regions, Telix accesses diverse patient populations and regulatory pathways for accelerated market penetration.

    🐌 Key considerations before investing in Telix Pharmaceuticals

    Even the most targeted therapies face challenges in navigating complex regulatory landscapes and competitive pressures:

    • Development Risks: Most of Telix`s pipeline candidates remain in clinical development stages, creating uncertainty around regulatory approval timelines, efficacy outcomes, and commercialization success rates.
    • Market Competition: The theranostics sector attracts established pharmaceutical giants and innovative biotechnology companies, intensifying competition for market share, talent acquisition, and partnership opportunities.
    • Reimbursement Hurdles: Novel radiopharmaceutical treatments face complex reimbursement negotiations with healthcare systems and insurance providers, potentially limiting patient access and revenue generation capabilities.
    • Regulatory Complexity: Radiopharmaceuticals require specialized manufacturing facilities and stringent regulatory oversight, creating operational challenges and increasing compliance costs across multiple jurisdictions.

    Final thoughts on Telix Pharmaceuticals

    Telix Pharmaceuticals` pioneering position in theranostic medicine and commercial success with Illuccix demonstrate the company`s ability to translate innovative science into viable cancer treatments. The diversified pipeline and global operational footprint provide multiple pathways for growth in the expanding precision medicine market. However, investors must consider development risks and regulatory complexities inherent in radiopharmaceutical innovation. Like a skilled oncologist combining multiple treatment modalities, Telix`s integrated approach to cancer diagnosis and therapy positions it uniquely to benefit from the growing demand for personalized cancer care.

  • Hims & Hers Health (NYSE:HIMS)

    Hims & Hers Health Inc. is a direct-to-consumer telehealth company offering personalized healthcare solutions through a digital platform. Founded in 2017 and headquartered in San Francisco, California, the company has rapidly expanded its services across the United States. In 2024, Hims & Hers achieved its first profitable year, reporting revenue of $1.5 billion a 69% increase year-over-year and net income of $126 million.

    The company`s core business encompasses several segments: men`s health (including treatments for erectile dysfunction and hair loss), women`s health (such as birth control and menopause care), mental health services, dermatology, and weight management. Hims & Hers operates a subscription-based model, providing virtual consultations, prescription medications, and over-the-counter products delivered directly to consumers. The platform emphasizes accessibility and convenience, targeting health-conscious individuals seeking discreet and affordable healthcare options.

    Hims & Hers Health financial statements

    Analysts recommendation: 2.83

    Financial Health

    • Return on assets (ROA): 5.56%
    • Return on equity (ROE): 26.21%
    • Return on investment (ROI): 12.07%

    Profitability

    • Gross margin: 75.01%
    • Operating margin: 2.06%
    • Net profit margin: 6.05%

    Growth

    • EPS (past 5 years): 17.22%
    • EPS (current): 0.53
    • EPS estimate (next quarter): 0.09
    • EPS growth (this year): -80.3%
    • EPS growth (next year): 36.24%
    • EPS growth (next 5 years): 24.84%
    • EPS growth (quarter-over-quarter): 198.06%
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 49.2%

    💡 Why invest in Hims & Hers Health?

    Hims & Hers Health offers several compelling reasons to consider investing:

    • Rapid Revenue Growth: The company reported a 69% year-over-year revenue increase in 2024, indicating strong market demand.
    • First Year of Profitability: Achieving net income of $126 million in 2024 marks a significant milestone in the company`s financial performance.
    • Expanding Subscriber Base: With 2.2 million subscribers by the end of 2024, the company experienced a 45% increase from the previous year.
    • Diversified Service Offerings: The company`s broad range of healthcare services caters to various consumer needs, enhancing market reach.

    🐌 Key considerations before investing in Hims & Hers Health

    However, prospective investors should weigh the following challenges:

    • Regulatory Challenges: The company`s compounded weight-loss treatments have attracted regulatory scrutiny, potentially impacting future offerings.
    • Market Competition: The telehealth sector is highly competitive, with numerous players offering similar services, which may pressure margins.
    • Dependence on Subscription Model: Reliance on a subscription-based revenue model may pose risks if customer retention declines.
    • Public Perception Risks: Executive stock sales and regulatory issues have led to public scrutiny, which could affect brand reputation.

    Final thoughts on Hims & Hers Health

    Hims & Hers Health`s impressive revenue growth and transition to profitability in 2024 highlight its potential in the telehealth industry. While regulatory challenges and market competition present risks, the company`s diversified services and expanding subscriber base position it well for continued growth.

  • Krystal Biotech (NYSE:KRYS)

    Krystal Biotech is a biotechnology company focused on developing gene therapy treatments for rare and serious skin diseases. Founded in 2016 and headquartered in Pittsburgh, Pennsylvania, the company specializes in leveraging its proprietary HSV-1-based gene delivery platform to create transformative treatments. Krystal Biotech is dedicated to advancing genetic medicine, with a strong emphasis on addressing unmet medical needs in dermatology and beyond.

    The company`s lead product, Vyjuvek, is a breakthrough gene therapy designed to treat dystrophic epidermolysis bullosa (DEB), a rare and debilitating skin disorder. Krystal Biotech`s pipeline includes other gene therapies targeting dermatological and respiratory conditions, demonstrating its commitment to expanding the applications of genetic medicine. By integrating cutting-edge science with a patient-centric approach, Krystal Biotech continues to push the boundaries of innovation in gene therapy.

    Krystal Biotech financial statements

    Analysts recommendation: 1.17

    Financial Health

    • Return on assets (ROA): 8.91%
    • Return on equity (ROE): 19.66%
    • Return on investment (ROI): 13.99%

    Profitability

    • Gross margin: 94.26%
    • Operating margin: 42.31%
    • Net profit margin: 53.3%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 6.66
    • EPS estimate (next quarter): 1.09
    • EPS growth (this year): 192.3%
    • EPS growth (next year): 55.19%
    • EPS growth (next 5 years): 54.95%
    • EPS growth (quarter-over-quarter): 145.31%
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 16.6%

    💡 Why invest in Krystal Biotech?

    Like a genetic locksmith crafting precise keys to unlock cellular healing, Krystal Biotech pioneers transformative gene therapies for devastating skin conditions:

    • FDA Commercial Success: Krystal Biotech achieved FDA approval for Vyjuvek, the first gene therapy for dystrophic epidermolysis bullosa, generating significant revenue streams and validating their HSV-1 delivery platform technology.
    • Orphan Disease Focus: The company targets rare skin diseases with substantial unmet medical needs, securing orphan drug designations that provide market exclusivity, premium pricing, and reduced regulatory barriers.
    • Proprietary Platform Technology: Krystal`s proprietary HSV-1-based gene delivery system enables multiple therapeutic applications across dermatological and respiratory conditions, creating pipeline expansion opportunities.
    • Exceptional Strong Financials: The company demonstrates impressive profitability metrics with high gross margins and strong cash generation, providing financial stability for continued research and development investments.

    🐌 Key considerations before investing in Krystal Biotech

    Even the most promising genetic medicines face scientific and commercial challenges that can impact long-term success:

    • Gene Therapy Risks: Gene therapy development involves complex manufacturing processes, potential safety concerns, and uncertain clinical outcomes that could delay or prevent successful commercialization of pipeline candidates.
    • Rare Disease Markets: Rare disease markets have inherently small patient populations, limiting revenue potential and requiring premium pricing strategies that may face reimbursement challenges from healthcare systems.
    • Competitive Threats: Large pharmaceutical companies and specialized biotechnology firms increasingly compete in gene therapy markets, potentially challenging Krystal`s market position and pricing power.
    • Regulatory Complexity: Gene therapies face stringent regulatory oversight and evolving safety requirements that can increase development costs, extend approval timelines, and create compliance challenges.

    Final thoughts on Krystal Biotech

    Krystal Biotech`s successful commercialization of Vyjuvek and strong financial performance demonstrate the company`s ability to translate innovative gene therapy science into viable treatments for rare diseases. The proprietary platform technology and orphan disease focus provide competitive advantages in the expanding genetic medicine market. However, investors must consider development risks and market limitations inherent in rare disease biotechnology. Like a master geneticist rewriting the code of life, Krystal`s precision approach to gene therapy positions it uniquely to benefit from the growing demand for transformative treatments in underserved patient populations.

  • Adtalem Global Education (NYSE:ATGE)

    Adtalem Global Education Inc. is a leading provider of healthcare education and workforce solutions operating medical, veterinary, nursing, and other healthcare-focused educational institutions across the United States. Founded in 1973 and headquartered in Illinois, the company has evolved from a diversified education provider into a focused healthcare education specialist serving growing demand for qualified healthcare professionals. The company has demonstrated consistent enrollment growth and strong graduate outcomes through its portfolio of accredited institutions including medical schools, nursing programs, and veterinary colleges.

    The company's core business encompasses degree programs, certificate courses, and continuing education offerings delivered through campus-based and online formats across medical, nursing, veterinary, and allied health disciplines. Adtalem operates well-established institutions including American University of the Caribbean School of Medicine, Ross University School of Medicine, Chamberlain University, and Walden University serving domestic and international students. Looking ahead, the company continues to expand program offerings, enhance student outcomes, pursue strategic acquisitions, and capitalize on persistent healthcare workforce shortages driving sustained demand for qualified graduates.

    Adtalem Global Education financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 7.9%
    • Return on equity (ROE): 17.38%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 57.11%
    • Operating margin: 18.56%
    • Net profit margin: 13.79%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 6.54
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): 41.8%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 10.8%

    💡 Why invest in Adtalem Global Education?

    Like a specialized healthcare education provider addressing workforce shortages, Adtalem Global Education demonstrates compelling growth drivers:

    • Healthcare Workforce Demand: Persistent shortages of doctors, nurses, and veterinarians create sustained enrollment demand for healthcare education programs while graduates enjoy strong employment prospects and career opportunities.
    • Accredited Institution Portfolio: Ownership of established, accredited medical and nursing schools provides competitive advantages through regulatory approvals, clinical partnerships, and reputation that create barriers to entry for competitors.
    • Strong Graduate Outcomes: High pass rates on licensing exams and strong employment statistics for graduates support enrollment growth, pricing power, and institutional reputation that drive long-term business sustainability.
    • Diversified Revenue Streams: Multiple institutions across different healthcare disciplines reduce concentration risk while providing cross-selling opportunities and operational synergies that enhance overall business resilience.

    🐌 Key considerations before investing in Adtalem Global Education

    Despite favorable market dynamics, Adtalem Global Education faces challenges that warrant careful investor evaluation:

    • Regulatory Compliance Risk: Extensive oversight from accreditation bodies, state regulators, and federal agencies creates compliance burdens and risks of sanctions that can disrupt operations or limit growth opportunities.
    • Student Debt Concerns: High tuition costs and student debt levels attract political scrutiny and regulatory attention that could result in unfavorable policy changes affecting enrollment demand or financial aid availability.
    • Competition Intensifying: Growing number of healthcare education providers and expansion by traditional universities into online programs increase competitive pressure on enrollment, pricing, and market share across key programs.
    • Execution Risk Significant: Maintaining educational quality, accreditation standards, and graduate outcomes across multiple institutions requires substantial management attention and creates operational complexity that can impact performance.

    Final thoughts on Adtalem Global Education

    Adtalem Global Education's healthcare workforce demand exposure, accredited institution portfolio, and strong graduate outcomes position it well to benefit from persistent healthcare professional shortages. However, investors must weigh the company's regulatory compliance risk, student debt concerns, intensifying competition, and significant execution risk that can impact growth and profitability. Like a focused healthcare education provider serving critical workforce needs, Adtalem offers exposure to structural healthcare trends with the benefits of established institutions balanced against the complexities of operating in a heavily regulated education sector.

  • OSI Systems (NYSE:OSIS)

    OSI Systems, Inc. is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications in homeland security, healthcare, defense, and aerospace industries. Founded in 1987 and headquartered in Hawthorne, California, the company has established itself as a global leader in security and inspection systems. The company reported strong growth in its security division, with significant contract wins and expansion into new international markets.

    The company`s core business is built around three main divisions: Security, Healthcare, and Optoelectronics and Manufacturing. OSI Systems specializes in developing advanced X-ray and other inspection technologies for airports, borders, and critical infrastructure. Through its commitment to innovation and quality, OSI Systems continues to enhance its product portfolio and expand its global presence in security and healthcare markets.

    OSI Systems financial statements

    Analysts recommendation: 1.33

    Financial Health

    • Return on assets (ROA): 6.25%
    • Return on equity (ROE): 17.58%
    • Return on investment (ROI): 10.42%

    Profitability

    • Gross margin: 33.58%
    • Operating margin: 9.31%
    • Net profit margin: 8.68%

    Growth

    • EPS (past 5 years): 16.58%
    • EPS (current): 8.85
    • EPS estimate (next quarter): 1.38
    • EPS growth (this year): 12.4%
    • EPS growth (next year): 9.67%
    • EPS growth (next 5 years): 10.12%
    • EPS growth (quarter-over-quarter): 18.68%
    • Sales growth (past 5 years): 8%
    • Sales growth (quarter-over-quarter): 11.8%

    💡 Why invest in OSI Systems?

    Like a digital fortress protecting the modern world, OSI Systems stands guard at the intersection of security and healthcare technology:

    • Security Leadership: OSI Systems dominates airport and border security markets with advanced X-ray screening technologies, serving critical infrastructure worldwide and securing consistent government contracts.
    • Healthcare Diversification: Through Spacelabs Healthcare division, the company provides patient monitoring and diagnostic solutions, creating stable revenue streams that balance security sector cyclicality.
    • Vertical Integration: OSI`s in-house manufacturing capabilities enable superior quality control and cost management, providing competitive advantages in pricing and product reliability.
    • Global Expansion: With operations across North America, Europe, Asia, and the Middle East, OSI accesses emerging markets and diversifies revenue streams across multiple geographic regions.

    🐌 Key considerations before investing in OSI Systems

    Even the strongest security systems face vulnerabilities that investors must carefully evaluate:

    • Government Dependency: OSI`s heavy reliance on government contracts creates revenue volatility and exposure to budget cuts, procurement delays, and changing political priorities in security spending.
    • Competitive Pressure: Intensifying competition from established players and innovative startups in security and healthcare technology sectors threatens pricing power and market share retention.
    • Regulatory Complexity: Operating in highly regulated industries requires extensive compliance efforts and certification processes that can delay product launches and increase operational costs significantly.
    • Market Volatility: As a technology stock, OSI faces sensitivity to market sentiment and sector rotation, with valuations potentially reflecting high growth expectations and increased volatility risk.

    Final thoughts on OSI Systems

    OSI Systems` commanding position in security technology and strategic healthcare diversification create a compelling investment narrative for the digital protection era. The company`s vertical integration and global reach provide operational advantages in serving critical infrastructure needs. However, investors must weigh government contract dependency against the company`s technological leadership and market expansion potential. Like a master locksmith whose expertise becomes more valuable as threats evolve, OSI`s specialized security and healthcare solutions position it to benefit from increasing global security concerns and healthcare technology adoption.

  • Topicus (V:TOI)

    Topicus.com Inc. is a leading Canadian technology company that operates as a constellation of vertical market software businesses, providing mission-critical software solutions to specialized industries including healthcare, education, and professional services. Spun off from Constellation Software in 2021, Topicus focuses on acquiring, developing, and managing software companies that serve niche markets with high switching costs and recurring revenue models. The company has established itself as a prominent player in the vertical market software space through its disciplined acquisition strategy and operational excellence in managing diverse software portfolios.

    The company`s core strategy revolves around acquiring small to medium-sized software businesses that dominate their respective vertical markets, particularly in Europe and other international markets outside North America. Topicus operates through a decentralized model where acquired companies maintain their operational independence while benefiting from the parent company`s capital allocation expertise and best practices. With the continued digitalization of specialized industries and the growing demand for industry-specific software solutions, Topicus is well-positioned to capitalize on consolidation opportunities in the fragmented vertical market software landscape while delivering sustainable growth and value creation.

    Topicus financial statements

    Analysts recommendation: 2.3

    Financial Health

    • Return on assets (ROA): 7.16%
    • Return on equity (ROE): 32.59%
    • Return on investment (ROI): 15.6%

    Profitability

    • Gross margin: 36.58%
    • Operating margin: 13.22%
    • Net profit margin: 9.08%

    Growth

    • EPS (past 5 years): 21.3%
    • EPS (current): 0.5
    • EPS estimate (next quarter): 45.8
    • EPS growth (this year): 51.6%
    • EPS growth (next year): 14.2%
    • EPS growth (next 5 years): 16.8%
    • EPS growth (quarter-over-quarter): 19.4%
    • Sales growth (past 5 years): 24.6%
    • Sales growth (quarter-over-quarter): 19.6%

    💡 Why invest in Topicus?

    Like a master craftsman who specializes in creating precision tools for specific trades, Topicus demonstrates compelling strengths that make it attractive in the specialized software acquisition space:

    • Market Focus: Topicus targets niche software markets with high switching costs and recurring revenue, providing defensive business characteristics and predictable cash flow generation from specialized industries.
    • Proven Acquisition Expertise: The company leverages experienced management team`s track record in identifying, acquiring, and integrating vertical market software businesses while maintaining operational excellence and growth momentum.
    • Decentralized Operating Model: Topicus maintains a hands-off approach that preserves entrepreneurial culture and domain expertise within acquired companies while providing capital and strategic guidance for sustainable growth.
    • International Market Expansion: The company focuses on European and international markets outside North America, accessing fragmented software markets with significant consolidation opportunities and less competition from larger acquirers.

    🐌 Key considerations before investing in Topicus

    However, like navigating complex acquisition landscapes where valuation pressures and integration challenges create obstacles, Topicus faces several risks that software investment specialists must carefully assess:

    • Acquisition Valuation Pressure: Increasing competition for quality software assets has driven up acquisition multiples, potentially reducing future returns and making it challenging to find attractively priced acquisition targets.
    • Integration Execution Risk: Successfully managing a diverse portfolio of acquired companies requires exceptional operational capabilities, and integration failures could impact overall performance and growth trajectory.
    • Market Concentration Exposure: Heavy focus on European markets creates geographic concentration risk and exposure to regional economic conditions, regulatory changes, and currency fluctuation impacts on financial performance.
    • Capital Allocation Dependency: The company`s success depends heavily on management`s ability to continuously identify and execute profitable acquisitions while maintaining disciplined capital allocation and avoiding value-destructive deals.

    Final thoughts on Topicus

    Topicus`s vertical market focus strategy, proven acquisition expertise, decentralized operating model, and international market expansion create compelling opportunities for investors seeking exposure to the growing vertical market software consolidation trend. However, the company`s acquisition valuation pressures, integration risks, market concentration exposure, and capital allocation dependency require careful evaluation of the inherent complexities in software roll-up investing. Like a skilled portfolio manager who builds value through strategic acquisitions, Topicus offers growth potential for investors who understand both the opportunities and challenges of the specialized software acquisition business model.

  • Merit Medical Systems (NYSE:MMSI)

    Merit Medical Systems is a global manufacturer and distributor of medical devices used primarily in interventional, diagnostic, and therapeutic procedures. Founded in 1987 by Fred P. Lampropoulos and headquartered in South Jordan, Utah, the company has expanded its product portfolio and global reach to become a key player in the medical technology industry. Over the years, Merit Medical has built a reputation for innovation and quality manufacturing in the interventional medicine space.

    The company`s core business focuses on developing and supplying a wide range of medical products, including catheters, guide wires, embolotherapy devices, and hemostasis management tools. Merit Medical serves hospitals, healthcare providers, and specialty clinics worldwide, emphasizing innovation and high-quality manufacturing to improve patient outcomes. Its commitment to advancing minimally invasive procedures has positioned it as a leader in the interventional medicine space, with products used in cardiovascular, peripheral vascular, and oncology procedures.

    Merit Medical Systems financial statements

    Analysts recommendation: 1.42

    Financial Health

    • Return on assets (ROA): 4.28%
    • Return on equity (ROE): 8.3%
    • Return on investment (ROI): 5.47%

    Profitability

    • Gross margin: 48.47%
    • Operating margin: 11.1%
    • Net profit margin: 8.02%

    Growth

    • EPS (past 5 years): 83.71%
    • EPS (current): 1.95
    • EPS estimate (next quarter): 0.85
    • EPS growth (this year): -4.2%
    • EPS growth (next year): 13.19%
    • EPS growth (next 5 years): 5.82%
    • EPS growth (quarter-over-quarter): 2.03%
    • Sales growth (past 5 years): 6.51%
    • Sales growth (quarter-over-quarter): 13%

    💡 Why invest in Merit Medical Systems?

    Like a skilled surgeon wielding precision instruments, Merit Medical creates life-saving tools that enable minimally invasive medical procedures:

    • Interventional Focus: Merit Medical specializes in interventional medical devices including catheters, guide wires, and embolotherapy products that enable minimally invasive procedures, benefiting from growing demand.
    • Product Innovation: The company invests heavily in R&D to develop innovative medical devices and technologies, maintaining competitive advantages through continuous product improvements and new introductions.
    • Global Distribution: Merit Medical operates worldwide with manufacturing facilities and distribution networks across multiple continents, providing access to growing international healthcare markets and geographic diversification.
    • Recurring Revenue: The company generates stable revenue streams through disposable medical devices and consumable products that require regular replacement, creating predictable demand patterns from healthcare providers.

    🐌 Key considerations before investing in Merit Medical Systems

    Even the most precise medical instruments face challenges that can impact their ability to deliver consistent growth and market penetration:

    • Regulatory Complexity: Merit Medical operates in heavily regulated markets requiring FDA approvals and international certifications, creating lengthy development timelines, compliance costs, and approval delays.
    • Competitive Pressure: The medical device industry faces intense competition from established healthcare giants and innovative startups, pressuring margins and requiring continuous R&D investments to maintain market position.
    • Healthcare Spending: The company`s performance depends on healthcare capital expenditures and procedure volumes, making it vulnerable to budget constraints, reimbursement changes, and economic downturns affecting hospital spending.
    • Product Lifecycle: Medical devices face finite product lifecycles and require continuous innovation to maintain relevance, creating ongoing R&D costs and risks associated with new product development and market acceptance.

    Final thoughts on Merit Medical Systems

    Merit Medical Systems` specialization in interventional medical devices and commitment to innovation create compelling opportunities in the growing minimally invasive procedure market. The company`s global distribution network and recurring revenue model provide competitive advantages in serving healthcare providers worldwide. However, investors must consider regulatory complexities and competitive pressures that characterize the medical device sector. Like a precision medical instrument calibrated for optimal performance, Merit Medical`s specialized expertise becomes increasingly valuable as healthcare continues its shift toward less invasive treatment options.

  • Molina Healthcare (NYSE:MOH)

    Molina Healthcare is a managed care company that provides health insurance services primarily to individuals and families eligible for government-sponsored healthcare programs like Medicaid and Medicare. The company was founded in 1980 by Dr. C. David Molina in Long Beach, California. Originally established as a single clinic serving low-income patients, Molina Healthcare has expanded into a nationwide provider of comprehensive health plans.

    The company`s core business revolves around offering Medicaid, Medicare Advantage, and Marketplace health plans across multiple U.S. states. Molina Healthcare focuses on improving access to quality care for underserved populations by partnering with healthcare providers, state governments, and community organizations. With a strong emphasis on cost-effective care management and patient-centered services, Molina continues to grow its footprint in the managed care industry.

    Molina Healthcare financial statements

    Analysts recommendation: 2.42

    Financial Health

    • Return on assets (ROA): 5.27%
    • Return on equity (ROE): 19.71%
    • Return on investment (ROI): 14.56%

    Profitability

    • Gross margin: 10.47%
    • Operating margin: 1.25%
    • Net profit margin: 2.06%

    Growth

    • EPS (past 5 years): 12.22%
    • EPS (current): 16.25
    • EPS estimate (next quarter): 6.2
    • EPS growth (this year): -73.4%
    • EPS growth (next year): 15.55%
    • EPS growth (next 5 years): 12.8%
    • EPS growth (quarter-over-quarter): 5.33%
    • Sales growth (past 5 years): 19.92%
    • Sales growth (quarter-over-quarter): 11.6%

    💡 Why invest in Molina Healthcare?

    Molina Healthcare offers several potential advantages for investors seeking exposure to the healthcare sector:

    • Underserved Population Focus: The company serves a significant and growing population reliant on government-funded healthcare programs, providing essential services to Medicaid and Medicare beneficiaries across multiple states.
    • Strong Revenue Expansion: Expansion into new markets and growth in Medicaid and Medicare enrollment can drive substantial revenue growth, supported by increasing government healthcare spending and program expansion initiatives.
    • Stable Government Contracts: Reliance on government programs provides a stable revenue stream with predictable cash flows, reducing exposure to economic downturns and providing visibility into future earnings performance.
    • Social Impact Mission: For investors interested in socially responsible investing, Molina Healthcare aligns with the goal of improving healthcare access for underserved communities while generating attractive financial returns.

    🐌 Key considerations before investing in Molina Healthcare

    However, before investing in Molina Healthcare, it`s crucial to consider these potential challenges:

    • Complex Regulatory Landscape: The healthcare industry is heavily regulated, with changes in government policies significantly impacting reimbursement rates, program eligibility, and operational requirements across multiple state jurisdictions.
    • State Budget Pressures: Economic downturns can affect state budgets, impacting Medicaid funding levels and enrollment growth while creating uncertainty around contract renewals and reimbursement rate adjustments.
    • Intense Industry Competition: The managed care industry is highly competitive, with both established players and new entrants vying for market share, creating ongoing pressure on pricing, margins, and contract retention.
    • Policy Reform Risks: Changes in healthcare policies at federal or state levels can significantly impact the company's business model, financial performance, and growth prospects in unpredictable ways.

    Final thoughts on Molina Healthcare

    Molina Healthcare's focus on underserved populations and stable government contracts make it attractive for healthcare sector exposure. However, regulatory complexity, state budget pressures, and policy reform risks require careful evaluation. Investors should research the company's market expansion plans and government relationships before investing.

  • Genus (L:GNS)

    Genus plc is a leading global animal genetics company that develops and commercializes breeding technologies and genetic solutions for livestock producers worldwide. Founded in 1933 and headquartered in Basingstoke, United Kingdom, the company has established itself as a pioneer in animal breeding science, serving customers in over 70 countries through its comprehensive portfolio of bovine and porcine genetics, reproductive technologies, and data analytics services. Genus has built its reputation through decades of genetic research and innovation, helping farmers improve productivity, sustainability, and animal welfare through advanced breeding programs and biotechnology solutions.

    The company operates through two primary divisions: ABS (cattle genetics) and PIC (pig genetics), providing integrated breeding solutions that combine superior genetics, reproductive technologies, and data-driven insights to optimize livestock performance. Genus`s core activities encompass genetic research and development, artificial insemination services, embryo transfer technologies, genomic testing, and farm management software solutions that enable precision breeding decisions. With growing global demand for sustainable protein production and increasing focus on animal welfare and environmental stewardship, Genus is strategically positioned to capitalize on the agricultural industry`s transition toward more efficient and sustainable livestock production systems.

    Genus financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 4.53%
    • Return on equity (ROE): 3.9%
    • Return on investment (ROI): -51.71%

    Profitability

    • Gross margin: 40.19%
    • Operating margin: 10.08%
    • Net profit margin: 2.87%

    Growth

    • EPS (past 5 years): -12.86%
    • EPS (current): 0.29
    • EPS estimate (next quarter): -0.04
    • EPS growth (this year): 67.96%
    • EPS growth (next year): 75.76%
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): -4.48%
    • Sales growth (quarter-over-quarter): 0.4%

    💡 Why invest in Genus?

    Like a master breeder cultivating superior livestock genetics, Genus demonstrates compelling competitive advantages in agricultural biotechnology:

    • Genetic Leadership: Genus maintains leading positions in bovine and porcine genetics with decades of breeding expertise, proprietary genetic lines, and advanced reproductive technologies that create sustainable competitive moats.
    • Global Market Access: The company`s established presence in over 70 countries provides diversified revenue streams and access to growing protein markets in developing economies with expanding middle-class populations.
    • Innovation Pipeline: Continuous investment in genomic research, biotechnology, and data analytics enables Genus to develop next-generation breeding solutions that improve livestock productivity and sustainability metrics.
    • Sustainability Positioning: Growing focus on sustainable agriculture and animal welfare aligns with Genus`s genetic solutions that improve feed efficiency, reduce environmental impact, and enhance livestock health outcomes.

    🐌 Key considerations before investing in Genus

    However, like managing complex agricultural cycles and biological systems, Genus faces industry challenges that could impact growth and profitability:

    • Agricultural Cyclicality: Livestock genetics demand is tied to agricultural commodity cycles, farm profitability, and protein consumption patterns that can be volatile due to economic conditions and trade policies.
    • Regulatory Complexity: International operations expose Genus to varying regulatory frameworks for biotechnology, animal health, and genetic modification that could impact product approvals and market access.
    • Disease Risk Exposure: Animal disease outbreaks, biosecurity concerns, and health crises in livestock populations could disrupt breeding programs, reduce demand, and impact operational continuity across regions.
    • Technology Disruption: Emerging biotechnologies, gene editing techniques, and alternative protein production methods could potentially disrupt traditional livestock breeding markets and competitive dynamics.

    Final thoughts on Genus

    Genus has established a strong position in global animal genetics through decades of breeding expertise, innovative biotechnology solutions, and comprehensive market coverage that serves the growing demand for sustainable protein production. The company`s genetic leadership, global reach, and alignment with sustainability trends create compelling opportunities for long-term growth in agricultural biotechnology. While agricultural cyclicality, regulatory complexity, and emerging technology risks present challenges, Genus`s role as an essential partner in livestock productivity improvement positions it well to benefit from the ongoing evolution toward more efficient and sustainable animal agriculture systems.

If you are interested in other stock categories, check out my other lists of the best mid-cap semiconductor, industrial, energy, basic materials, utility, retail, healthcare, tech, financial stocks.