- MedTech stocks are trading sharply higher on Tuesday after the industry bellwether Johnson & Johnson (JNJ) reported better than expected Q1 2022 sales for its MedTech segment.
- The iShares U.S. Medical Devices ETF (NYSEARCA:IHI) has recorded the best intraday gain since June 2020, driven by notable gainers such as Intuitive Surgical (NASDAQ:ISRG), Stryker (NYSE:SYK), Boston Scientific (BSX), Glaukos Corporation (GKOS) and Inari Medical (NARI).
- Revenue from J&J’s MedTech division, previously identified as Medical Devices, reached $7.0B for the quarter with a ~6% YoY growth, exceeding the Street forecasts of $6.7B, according to Bloomberg.
- In reaction, Needham analyst Mike Matson wrote: “We believe JNJ’s MedTech results are a positive indicator and expect most of our companies under coverage to beat consensus estimates in 1Q22.”
- Citing J&J’s (JNJ) MedTech sales, Wells Fargo’s Larry Biegelsen argued that orthopedic sales of Stryker (SYK) and Zimmer Biomet (NYSE:ZBH) could exceed estimates.
Since the COVID-driven slump in March 2020, both stocks have underperformed the broader market, as shown in this graph.