Barclays Says MedTech Stocks Are at Their Cheapest in a Decade — and Names 2 Stocks to Buy

Medical technology has been changing human life for centuries. This is especially true for patients dealing with the long-term lifestyle impacts of acute and chronic conditions. Diseases such as diabetes, Crohn’s, and cancer, or severe orthopedic injuries, make deep impacts on quality of life – but the latest generations of medications, medical treatment devices, and surgical procedures can ameliorate, or sometimes reverse, such serious conditions.

Surgical procedures, and the prescription and use of medical devices, are all increasing, and that increased use is bringing a boost to the global medical device market. Last year, according to Fortune Business Insights, the medical device sector was valued at $572.31 billion, and it is expected to reach as high as $604.99 billion this year. The industry is predicted to show a CAGR of 6.9% over the next several years, and to hit an impressive $1.032 trillion by 2034. That is serious growth, and represents a solid opportunity for investors. The North American sector, with a market share of more than 38%, dominates medical devices.

Barclays analyst Christopher Pasquale is watching this opportunity, and he lays out a positive outlook for the sector as a whole. In a note earlier this month, Pasquale lays out a case for buying in, based on the sector’s strong foundation and several clear reasons for optimism.

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“After several years of relative underperformance amid decelerating top-line momentum, MedTech stocks are as cheap today as they’ve been in a decade and trading at their biggest discount to the S&P 500 since the height of the Tech Bubble. We think the negativity around the sector is overdone, exacerbated by a series of company-specific headwinds that have cropped up over the past year and made a reversion to the mean for industry growth rates feel like a more significant deterioration in fundamentals. We see a likely stabilization of large-cap MedTech revenue growth in 2027 as a potential catalyst to drive improving sentiment and multiple expansion,” Pasquale opined.

Still, Pasquale isn’t suggesting investors buy every MedTech stock simply because valuations look appealing. His approach is more selective, favoring companies with the potential to outperform expectations and deliver stronger growth.

“While we think investors should remain selective until visibility into that outlook improves, we believe the current set-up offers attractive opportunities, with our Overweight ratings going to those names where we see a combination of 1) upside potential to Street estimates, 2) near-term catalysts, 3) accelerating top-line growth, and 4) overall quality,” the analyst added.

With that in mind, two MedTech stocks have earned Pasquale’s endorsement. But does the rest of Wall Street share his enthusiasm, or is he seeing something others have missed? We turned to the TipRanks database to find out.

Stryker Corporation (SYK)

The first stock we’ll look at is Stryker, a true generalist in the medical device sector. The company is known for the range and diversity of its product offering – from the very mundane to specialized digital tech. If you’ve had a hospital procedure, for example, there’s a high chance that you have stretched out on a bed made by Stryker.

The company’s product line is based on innovation and quality, and the end goal is always to improve patient experiences and outcomes in health care. Stryker’s product lines have found application in Surgery, Neurotechnology, and Orthopedics, and in concert with its customers in the medical provider field, Stryker touches the lives of more than 150 million patients every year.

Taking a closer look, we see that Stryker offers medical providers tools and services to meet a wide range of patient needs. Airway management, emergency patient transport, illuminated instruments, fluid management, emergency resuscitation, and even such mundane needs as patient hygiene, oral hygiene, and cleaning/disinfecting supplies – Stryker can supply whatever the med sector needs, and supports its products and customers through its services.

Stryker has had to deal with some serious headwinds this year. In March, the company suffered a cyberattack that disrupted operations worldwide, affecting order processing, manufacturing, and shipping. The attack was linked to Iran. Through the summer, the company had additional problems, including manufacturing issues in the peripheral vascular business and soft seasonal trends in the orthopedic business. Conflicting statements from management about the manufacturing problems also prompted investigations by securities law firms into potential disclosure violations.

Separately, Stryker announced a planned leadership transition in October. The company announced that in January, CEO Kevin Lobo will become Executive Chair of the Board of Directors, and COO Spencer Stiles will take over as CEO.

On the financial side, Stryker has been delivering better-than-expected results recently. The company’s 2Q26 results included $6.6 billion at the top line, a result that was up 9.4% year-over-year and beat the forecast by nearly $9.7 million. At the bottom line, the non-GAAP EPS of $3.69 was 20 cents per share over the estimates.

For Barclays’ Christopher Pasquale, the company’s ability to work through challenges is a key point, along with its ability to generate growth. He writes, “It’s been a challenging year for Stryker, as the company has worked to recover from the cyberattack it suffered in March, struggled through an uncharacteristically difficult acquisition integration process with Inari, and faced investor questions about moderating hospital spending and procedure volumes. Despite these recent headwinds, we believe the pieces are still in place for Stryker to deliver top- and bottom-line growth at the high-end of the large-cap MedTech group as the calendar flips to 2027, with our model calling for the company to post 8-9% cc revenue growth and 12-14% EPS gains over the next three years. With the stock trading at the smallest premium to the group since 2021, we see this as an opportunity to own one of the higher-quality names in the sector at an attractive multiple.”

To this end, the analyst puts an Overweight (i.e., Buy) rating on the stock, along with a $375 price target that implies a one-year upside potential of 35%. (To watch Miksic’s track record, click here)

Overall, Stryker has picked up 20 analyst reviews lately, and the split – 17 Buys and 2 Holds – gives the stock a Strong Buy consensus rating. The shares are trading for $277.33 and the average price target of $367.88 points to a one-year gain of ~33%. (See SYK stock forecast)

Beta Bionics (BBNX)

Next on our list is Beta Bionics, a med tech company with a specialized focus – Beta Bionics designs, devises, and markets high-end insulin pumps. The California-based company boasts that its iLet Bionic Pancreas features the only fully adaptive insulin-dosing algorithm currently available in the US. This is a system that is inherently adaptable, and fits itself to each individual patient, determining the correct insulin dose, delivering it, and lowering the burden on the user. In short, Beta Bionics has taken the most difficult part of diabetes control – tracking insulin needs and dosing oneself – and locked it into an automated device.

Type 1 diabetes imposes a heavy burden on its patients. The disease can be managed – unlike a century ago, it is not a death sentence. But the management requires frequent blood testing, several times per day, self-dosing of insulin, and careful attention to diet. Patients must learn how to take and test blood, read the test results, and prepare the insulin dose. The development of the insulin pump helped to automate that process, but brought its own difficulties. Beta Bionics is using modern digital technology to streamline the daily management of diabetes even further.

The company’s iLet Bionic Pancreas is both a medical device and a digital system. It is an automated insulin delivery (AID) unit, and is compatible with several popular continuous glucose monitors. The system calculates insulin doses using continuously monitored glucose levels and an adaptive algorithm initialized with the patient’s body weight. Users do not need to calculate doses or adjust conventional insulin settings, although they must still announce meals. This treatment system opens up a large market for Beta Bionics, as the company estimates that up to 80% of Type 1 diabetes patients are not meeting their glucose control goals.

We’ll see Beta Bionics’ 3Q26 results later this month, but for now, we can look back to the 2Q26 release. In the second quarter, the company reported total revenues of $32 million. This represented a 38% year-over-year increase in net sales, and it edged over the pre-report estimates by $549K. The company’s EPS came to a net loss, of 53 cents per share, but that was still 6 cents per share better than analysts had anticipated.

Barclays analyst Christopher Pasquale is upbeat on Beta Bionics, pointing to the company’s growing market share and the potential for further sales growth.

“Beta Bionics is our favorite way to position for the wave of innovation currently hitting the insulin pump market. The company’s iLet pump has gained solid traction since launching in 2023, with our model calling for Beta to exit this year with ~5% share of the U.S. pump installed base. We expect that adoption to accelerate in 2027 as the impact of the company’s recent sales force expansion and launch of the new Mint patch pump allow Beta to capture a growing portion of new patient starts. A potential mid-2027 Type 2 label expansion also looms as a growth catalyst, as it will enable the company to actively market to a patient cohort and provider group that we see as tailor-made to benefit from Beta’s approach to minimizing the burden of diabetes. Our model calls for the company’s revenue to rise from $125mn in 2026 to nearly $400mn by 2029, representing a 47% CAGR. We also expect visibility to improve over the coming year into Beta’s path to profitability and differentiated long-term margin structure, which we see as an important catalyst for multiple expansion,” Pasquale wrote.

What this all comes down to is an Overweight (i.e., Buy) rating, which Pasquale complements with a $30 price target. That target implies share appreciation of 70% on the one-year time horizon. (To watch Pasquale’s track record, click here)

Overall, the Street is generally bullish here. BBNX shares have a Moderate Buy consensus rating, based on 14 recent reviews with a split of 10 Buys and 4 Holds. The stock is selling for $17.63 right now, and its $23.72 average target price suggests a 12-month gain of ~35%. (See BBNX stock forecast)

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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