The medical info systems industry is thriving on the growing demand for contactless services. The industry witnessed exponential growth during the pandemic era. Even in the post-pandemic period, remote healthcare, a paperless environment and distant treatment paved the way for digital services.
At this stage, it will be prudent to invest in medical info system stocks for a stable portfolio in 2025. Five such stocks with a favorable Zacks Rank are: Inspire Medical Systems Inc. INSP, Omnicell Inc. OMCL, Talkspace Inc. TALK, Butterfly Network Inc. BFLY and Clover Health Investments Corp. CLOV.
The medical info systems industry comprises companies that develop and market healthcare information systems. These companies offer software and hardware solutions to healthcare providers with secure access to real-time clinical, administrative and financial data in a time-efficient manner. Focus on patient satisfaction, security of patient data and administrative cost control has increased the need for big data, 3D printing, blockchain and artificial intelligence (AI).
The medical sector is one of the major adopters of AI, which is currently being used to synthesize new compounds for drugs and create devices for more precise measurement and faster and more accurate diagnosis. One common application of AI has been in diagnostic settings, where it quickly and precisely detects image abnormalities that might be challenging for the human eye to spot.
Several medical device makers are also developing surgical robots with AI integration for complex and specialized procedures. Further, electronic health records, electronic medical records, predictive analytics and real-time alerting have been gaining prominence.
AI systems have been successful in multiple medical imaging use cases, such as detecting mitosis in breast cancer histology images, classifying skin cancer with dermatologist-level accuracy, diagnosing diabetic retinopathy from retinal fundus photographs and predicting cardiovascular risk factors from retinal fundus photographs.
Even though the pandemic is over, the need for contactless services is growing enormously. Within the medical information systems space, the telehealth and remote patient monitoring segments continue to grow at a fast pace.
The Zacks-defined Medical Info Systems Industry is currently in the top 14% of the Zacks Industry Rank. Since it is ranked in the top half of Zacks Ranked Industries, we expect the consulting services industry to outperform the market over the next three to six months.
These five medical info systems stocks have strong potential for 2025. These stocks have seen positive earnings estimate revisions over the last 30 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
Zacks Rank #1 Inspire Medical Systems is a medical technology company focused on the development and commercialization of innovative, minimally-invasive solutions for patients with obstructive sleep apnea (OSA). INSP’s proprietary Inspire system is the first and only FDA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe OSA.
INSP has developed a novel, closed-loop solution that continuously monitors a patient’s breathing and delivers mild hypoglossal nerve stimulation to maintain an open airway. A significant body of clinical data supports the safety and efficacy of INSP.
Inspire Medical Systems has an expected revenue and earnings growth rate of 19.1% and 52.6%, respectively, for 2025. The Zacks Consensus Estimate for next-year earnings has improved 0.5% in the last seven days.
Zacks Rank #1 Omnicell develops and markets end-to-end automation solutions for the medication-use process. OMCL’s automation solutions contain medication and supply dispensing systems, central pharmacy storage, retrieval and packaging solutions, a bedside automation solution, a physician order management solution, a decision support application, and a Web-based procurement application.
The products offered by OMCL enable care providers to improve patient safety and increase efficiency by lowering costs. OMCL also adheres to regulatory compliances and addresses issues related to population health.
Omnicell has an expected revenue and earnings growth rate of 3.3% and 6%, respectively, for 2025. The Zacks Consensus Estimate for next-year earnings has improved 3.5% in the last seven days.
Zacks Rank #1 Talkspace is a virtual behavioral healthcare company in the United States. TALK offers psychotherapy and psychiatry services through its platform to individuals, enterprises, and health plans and employee assistance programs. TALK provides text, audio, and video-based psychotherapy from licensed therapists.
TALK offers Talkspace Employee Assistance Program (EAP) and Talkspace Behavioral Health plan (BH) that provides online therapy to members through BH and EAP offerings, and Talkspace for Business for members to access its platform services on a benefit plan paid by the enterprise. TALK serves its platform through third-party platforms or marketplace, such as Apple App Store and Google Play App Store.
Talkspace has an expected revenue and earnings growth rate of 23.4% and more than 100%, respectively, for 2025. The Zacks Consensus Estimate for next-year earnings has improved 25% in the last 30 days.
Zacks Rank #2 Butterfly Network develops, manufactures, and commercializes ultrasound imaging solutions in the United States and internationally. BFLY offers Butterfly iQ, a handheld and single-probe whole body ultrasound system, Butterfly iQ+ and iQ3 ultrasound devices that can perform whole-body imaging in a single handheld probe integrated with the clinical workflow, and accessible on a user's smartphone, tablet, and almost any hospital computer system, and Butterfly iQ+ Vet, a handheld ultrasound system designed for veterinarians.
BFLY also provides Butterfly system, which includes probes, and related accessories and software subscriptions to healthcare systems, physicians, and healthcare providers through a direct sales force, distributors, and eCommerce channel. In addition, BFLY offers cloud-based software solutions to healthcare systems, teleguidance, in-app educational tutorials, and formal education programs
Butterfly Network has an expected revenue and earnings growth rate of 17.9% and 5.7%, respectively, for 2025. The Zacks Consensus Estimate for next-year earnings has improved 5.7% in the last 30 days.
Zacks Rank #2 Clover Health Investments provides medicare advantage plans in the United States. CLOV operates through two segments: Insurance and Non-Insurance. CLOV also offers Clover Assistant, a cloud-based software platform, that enables physicians to detect, identify, and manage chronic diseases earlier; and access to data-driven and personalized insights for the patients they treat.
Clover Health Investments has an expected revenue and earnings growth rate of 11.2% and 41.7%, respectively, for 2025. The Zacks Consensus Estimate for next-year earnings has improved 41.7% in the last 30 days.
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