4 Healthcare Technology Innovators to Invest in Before the New Year

Core Insights - The health technology sector has faced significant challenges in 2024, including labor shortages and geopolitical supply issues, despite advancements in AI-driven diagnostics and robotic-assisted surgeries [1][3][4] - Looking ahead to 2025, there is optimism for recovery in the sector due to favorable monetary policies, technological advancements, and projected improvements in global economic conditions [2][5][6] Industry Trends - Disruptive trends in 2024 included geopolitical conflicts and high energy costs, which negatively impacted profitability and led to clinical staffing shortages [3] - High interest rates restricted R&D activities and reduced aggregate demand, causing a demand-supply imbalance and price drops in the sector [4] Market Outlook for 2025 - The Federal Reserve's rate cuts are expected to improve borrowing conditions, particularly in attractive markets such as cardiovascular and oncology, enhancing R&D efforts [5] - The IMF projects a decline in global inflation, which could improve healthcare consumption patterns [6] Health Expenditure Projections - The Centers for Medicare & Medicaid Services (CMS) projects that National Health Expenditures (NHE) will grow at an average annual rate of 5.6% from 2023 to 2032, outpacing GDP growth [7] Focus Areas in Health Technology - Increasing regulatory support and technological breakthroughs are expected to drive growth in health technology stocks [8] - Companies are leveraging AI for precision and cost reduction, with a growing adoption of telemedicine and wearable health devices [9][10] Company-Specific Insights - Veracyte: Strong performance in diagnostics with projected 2025 sales of $487.5 million, a 9.8$1.14 billion, a 3.3% increase, and adjusted earnings expected to rise by 5.9% [13][14] - Masimo: Focus on patient monitoring with projected 2025 sales of $2.22 billion, a 6.2$44.94 billion, a 7% increase, with adjusted earnings projected to rise by 10% [17][18]