Hims(HIMS) ZACKS·2025-02-05 18:15Group 1: Impact of Tariffs on MedTech Sector - President Trump's executive order imposes a 25% tariff on goods from Canada and Mexico, and a 10% tariff on Chinese imports, significantly affecting the U.S. healthcare sector reliant on these countries for medical devices and pharmaceuticals [4][5][6] - The tariffs are expected to drive up production costs for medical technology companies, which may lead to higher prices for healthcare providers and patients, potentially resulting in fewer patient visits and delayed medical treatments [2][5][6] - Goldman Sachs estimates that a five-percentage-point increase in U.S. tariff rates could reduce S&P 500 earnings per share by 1% to 2%, with a potential overall reduction of 2% to 3% in forecasts if the tariffs are implemented [7] Group 2: Resilient MedTech Companies - ResMed is well-positioned due to its manufacturing facilities in multiple countries, including the U.S., and is expected to see a 21.9% earnings growth on an 8.9% revenue increase in fiscal 2025 [10][11] - Hims & Hers, with minimal reliance on affected countries, targets a $360 million U.S. total addressable market and anticipates 600% growth in 2024 earnings driven by a 68.2% revenue surge [12][13] - Medtronic's exposure to imports from China is less than 1% of total revenues, indicating limited direct impact from tariffs, and it is expected to report 4.8% earnings growth on 3.7% revenue growth in fiscal 2025 [14][15]