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As the categorization of medical procedures into essential and non-essential led to a decline in non-COVID-19 related medical procedures last year, the medical devices industry suffered a significant setback. However, solid progress on the vaccination front caused a rebound in demand for medical devices this year, primarily for rescheduled surgeries. Moreover, continued product innovations, the integration of artificial intelligence (AI), and entry into new market divisions position the industry well for solid long-term growth. The global medical devices market is expected to grow at a 5.2% CAGR to $671.49 billion by 2027. So, both ABT and ABMD are expected to benefit.
But while ABT gained 7.3% in price year-to-date, ABMD has surged 8.3%. ABMD is also a clear winner with 22.5% gains versus ABT’s 9.5% returns in terms of the past year’s performance. But which of these stocks is a better pick now? Let’s find out.
