GEHC Stock Up Following Approval to Boost Hemodynamic Monitoring

GE HealthCare Technologies Inc. GEHC announced the receipt of the CE mark for its Carevance patient monitor yesterday. This is expected to advance accessible and reliable care for more customers, starting in Europe.

It is worth mentioning that Carevance expands GE HealthCare’s modular monitoring solutions portfolio that aims to provide one unified monitoring solution for every patient and every changing need. Alongside the enterprise-premium flexibility of Carescape, Carevance will likely broaden access to advanced, scalable monitoring — together delivering clinical excellence and adaptability across diverse hospital scenarios.

The latest regulatory clearance is expected to be a significant stepping stone for GE HealthCare’s Monitoring Solutions business and strengthen its foothold in the niche space.

Trend of GE HealthCare’s Stock Following the News

Following the announcement, shares of the company gained nearly 0.8% till yesterday’s closing.

Historically, the company has gained a top-line boost from its various product innovations. We expect market sentiment on the stock to remain positive around this announcement, too.

GE HealthCare currently has a market capitalization of $34.74 billion. It has an earnings yield of 5.9%, better than the industry’s negative yield. In the last reported quarter, GEHC delivered an earnings surprise of 16.5%.

Significance of GEHC’s Latest Regulatory Clearance

Per GE HealthCare, Carevance is expected to offer a clinically reliable and cost-effective solution with validated parameters and an intuitive, efficient workflow that can help empower care teams to stay focused on their patients. As hospitals are currently facing new challenges, like staffing shortages and increasing patient complexity, Carevance will likely support delivering consistent, high-quality patient monitoring. This is aimed at enabling flexible deployment across a wide range of care settings.

Per GE HealthCare’s management, Carevance introduces the new Cardiac Output Insights feature that combines a clinically validated algorithm with a visual decision support view, enabling clinicians to extend advanced hemodynamic monitoring to more patients without the barriers of additional hardware, invasive catheters or high costs.

Industry Prospects in Favor of GE HealthCare

Per a report by Market Research Future, the global cardiac output monitoring device market is projected to grow from $3.11 billion in 2024 to $5 billion by 2035 at a CAGR of approximately 4.4%. Factors like the growing adoption of advanced monitoring technologies and the growing acceptance of less invasive procedures are likely to drive the market.

Given the market potential, the latest regulatory achievement is expected to provide a significant boost to GE HealthCare's business.

GEHC’s Recent Developments

This month, GE HealthCare announced collaborations with two leading U.S. health systems — The Queen’s Health Systems in Honolulu, HI and Duke Health in Durham, NC — to help advance the development of GEHC’s new AI-driven hospital operations software.

The same month, GE HealthCare announced the launch of CareIntellect for Perinatal. It is a cloud-first Software-as-a-Service application designed to deliver clear, actionable insights that will likely aid clinicians improve maternal and fetal care.

Also, this month, GE HealthCare announced the unveiling of Carestation 850, its next-generation, FDA 510(k) pending anesthesia delivery system that is designed to help care teams adapt to evolving clinical and operational needs.

GE HealthCare’s Share Price Performance

Shares of the company have lost 14.1% in the past year against the industry’s 0.2% rise and the S&P 500’s gain of 18.4%.

GEHC’s Zacks Rank & Key Picks

Currently, GE HealthCare carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Boston Scientific Corporation BSX, ResMed Inc. RMD and Masimo Corporation MASI.

Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boston Scientific’s shares have gained 19.1% compared with the industry’s 0.2% rise in the past year.

ResMed, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.8%. RMD’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 4.5%.

ResMed has rallied 13.5% compared with the industry’s 0.2% rise in the past year.

Masimo, carrying a Zacks Rank of 2 at present, has an estimated growth rate of 20.5% for 2025. MASI’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.8%.

Masimo’s shares have gained 5.7% against the industry’s 10% decline in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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