Top 3 MedTech Stocks to Weather the Trump Tariff Turbulence

President Donald Trump’s new set of extensive tariffs on nearly all of America’s trading partners, at a minimum of 10%, are already in effect. Added to that, tariffs went as high as 50% for a few nations. Major trading partners like China, Japan, Taiwan, South Korea and India are facing steep “reciprocal” tariffs. Trump's implementation of these tariffs represents the most significant escalation in U.S. tariffs in nearly a century.

This move has caused significant fluctuations in the market, raising alarms about the possibility of a full-scale trade war. Moreover, implementing these tariffs could disrupt worldwide supply chains and elevate business expenses. Furthermore, a scenario featuring both inflation and recession in the United States seems quite likely. JP Morgan upgrades its projection for a global recession in 2025 to 60%. It anticipates a recession in the United States this year, spurred by the new tariffs, forecasting a GDP decline of 0.3% and an unemployment rate of 5.3%.

This time, most investors opposed Trump’s tariff policy. The global stock market crashed, causing the largest decline in the Dow Jones, Nasdaq, and S&P 500 stock market index since the epidemic. 

Amid such market volatility, investors are seen prioritizing long-term stability over short-term gains. Historically, the medical device industry has proven to be a reliable refuge during turbulent market periods. While short-term challenges like tariffs, labor shortages in healthcare, and rising costs persist, the long-term prospects for medical device stocks remain strong and encouraging. 

Moving ahead in 2025, MedTech companies, such as Fresenius Medical Care AG FMS, Phibro Animal Heath PAHC and Cencora, Inc. COR, are likely to stand out, given their ability to counter the industry-wide challenges while maintaining strong financial performance and leadership.

MedTech Emerges as a Resilient Investment Option

Even with various macroeconomic challenges, the MedTech sector, characterized by innovation and resilience, has drawn the attention of investors in recent years. The industry saw considerable expansion and innovation, spurred by technological progress and a rising need for personalized healthcare solutions. 

In line with this, the previous year showed a record number of FDA product authorizations, both pre-market approvals (PMAs) and 510(k) approvals. As the healthcare environment keeps changing, the MedTech sector, which includes medical devices, diagnostics and digital health, is undergoing a swift transformation.

Innovations in artificial intelligence, robotics, and minimal invasive techniques are poised to revolutionize healthcare services, increasing the need for advanced medical equipment and diagnostic instruments. Moreover, the rising emphasis on preventive care and digital health innovations is expected to boost the industry's growth. Per the Markets and Markets' report, the global MedTech industry market is estimated to grow to $694.70 billion by 2025 at a year-over-year increase of approximately 4%. 

3 MedTech Stock to Bet on

Amid a turbulent scenario, investors tend to favor value investing over growth or momentum. Value investors seize the chance to purchase shares at a reduced price when other investors begin selling their holdings at a lower price during such periods of market turbulence.

Using our propriety Stock Screener, we have shortlisted three MedTech majors carrying either a Zacks Rank of #1 (Strong Buy) or #2 (Buy) and a Value Score of A or B. 

Here are three stocks that meet the criteria:

Fresenius Medical Care AG is one of the largest integrated providers of products and services for individuals undergoing dialysis following chronic kidney failure. The company recently launched the newest version of its home dialysis machine, NxStage Versi HD, with GuideMe Software. FMS marked a milestone with over 14,000 U.S. patients using its NxStage system for Home Hemodialysis. Recently, the company’s application of the Anemia Control Model was featured at the first Centers for Medicare & Medicaid Services AI Demo Days in the United States. 

Meanwhile, Fresenius Medical’s newly implemented operating model led to operational improvements. The company’s continued divestment of its noncore and dilutive assets seems promising.

Fresenius Medical currently carries a Zacks Rank #1 and a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

The stock’s P/E stands at 11.36X, below the industry’s 23.48X. The company beat on earnings in each of the trailing four quarters, delivering an average surprise of 15.67%. Moreover, bottom-line estimate predicts 27.1% growth in the company’s 2025 earnings. 

Fresenius Medical Care AG & Co. KGaA Price

Fresenius Medical Care AG & Co. KGaA price | Fresenius Medical Care AG & Co. KGaA Quote

Phibro Animal Health is a leading global diversified animal health and mineral nutrition company. Phibro’s key animal health products, including MFAs (Medicated Feed Additives) and nutritional specialty products, facilitate the enhancement of animal nutrition. 

The company recently completed the acquisition of Zoetis Inc.’s product portfolio, which includes more than 37 product lines sold across approximately 80 countries and six manufacturing sites in the United States, Italy and China. The acquisition is expected to boost Phibro’s profitability and EBITDA margin and be accretive to its adjusted earnings per share (EPS). 

The company launched new commercial vaccines and looks forward to bringing additional vaccines to the Americas. With its extensive global presence, Phibro has a strong potential to expand into emerging markets.  Further, a strong, supportive balance sheet is highly encouraging.

PAHC currently carries a Zacks Rank #1 and a Value Score of B. The stock’s P/E stands at 9.88X, below the industry’s 15.56X. Its P/S of 0.70X is also discounted relative to the industry’s 1.30X. Moreover, the bottom-line estimate predicts 63% growth in the company’s 2025 earnings. 

Phibro Animal Health Corporation Price

Phibro Animal Health Corporation price | Phibro Animal Health Corporation Quote

Cencora is one of the world’s largest pharmaceutical services companies. Specialty products in COR’s portfolio include biologics, biosimilars, cell and gene therapies, plasma-derived medicines and complex injectables. Cencora recently launched Accelerate Pharmacy Solutions — a unified portfolio of solutions designed to help hospital and health systems customers optimize operations and improve financial performance. Additionally, Cencora inked a definitive agreement to acquire Retina Consultants of America to expand its leadership in Specialty. 

COR’s U.S. Healthcare Solutions segment remains the primary growth driver, supported by strong prescription utilization trends, specialty drug expansion and key strategic investments. Additionally, a stable balance sheet is encouraging.

Cencora currently has a Zacks Rank #2 and a Value Score of B. Its P/S of 0.18X is discounted relative to the industry’s 1.29X. The company beat on earnings in each of the trailing four quarters, delivering an average surprise of 4.94%. Moreover, the bottom-line estimate predicts 11.6% growth in the company’s 2025 earnings.

Cencora, Inc. Price

Cencora, Inc. price | Cencora, Inc. Quote

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