3 Medical Info Systems Stocks to Gain From Digitization Despite Industry Woes

The Medical Info Systems industry continues to expand rapidly, driven by innovations in healthcare resource management, patient data handling and integrated digital care delivery. Advanced technologies such as machine learning and generative and agentic AI are increasingly embedded into electronic health records, diagnostic tools and workflow automation systems, improving clinical decision support, reducing administrative burden and enhancing interoperability across providers and insurers.

Per a Markets and Markets report, the use of artificial intelligence (AI) in the healthcare market is expected to witness a CAGR of 38.6% during 2025-2030. The market’s growth will be propelled by the growing demand for enhanced diagnostic accuracy, optimized workflows and personalized medicine. A recent survey of health plans, employers and health systems found that 79% of health systems reported increasing their investments in digital health solutions over the past two years (PHTI report).

The growing demand for all kinds of digital healthcare support, including telehealth, cloud computing, AI, robotics and analytics, chatbots and virtual assistants and 3D printing, has created a unique opportunity for companies like Doximity DOCS, 10x Genomics TXG and Omnicell, Inc. OMCL. However, the healthcare system’s excessive dependence on IT comes with its share of risks. Any data disruption in the cloud-based service might result in a massive loss of information, thereby leading to a breakdown of the system.

Industry Description

The Zacks 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 AI. Industry players like Omnicell and Allscripts are raking in millions from the sale of software and related hardware, professional services and IT outsourcing services, and recurring service contracts for software maintenance and transaction processing services.

3 Trends Shaping the Future of the Medical Information Industry

Growing Demand for Remote Healthcare: Within the medical information systems space, remote patient monitoring segments continue to grow at a fast rate, courtesy of the rapid increase in usage of wearable devices and telehealth services. The major driver behind this growth is the increasing awareness about the usefulness of continuous patient monitoring devices. This has proved to be a game-changer in increasing the standard and efficiency of medical care. Further, health tech products are also accelerating the diagnosis process and automating hospital workflows through robotics, AI-driven chatbots and so on. Going by a Verified Market Research report, the global Smart Healthcare Products market was valued at $280.48 billion in 2024 and is expected to reach $796.36 billion by 2032, at a CAGR of 15.37%.

AI and Health: The medical sector remains one of the leading adopters of artificial intelligence, with applications expanding across drug discovery, diagnostics, clinical workflows, and patient care delivery. AI-driven models are increasingly used to accelerate early-stage drug development, integrate multimodal clinical data and support faster, more accurate clinical decision-making. In diagnostics, deep learning and computer vision tools have become mainstream, assisting clinicians in identifying subtle abnormalities in medical images such as X-rays, CT scans, MRIs and pathology slides that may be difficult for the human eye to detect consistently. AI is also being embedded into electronic health records and clinical information systems to enable predictive analytics, real-time alerts and proactive management of chronic and high-risk patients. Generative AI tools are gaining traction in clinical documentation and workflow automation, helping reduce administrative burden. At the same time, the rise of AI-enabled wearable devices and remote monitoring technologies is strengthening telemedicine and home-based care models. Together, these advances are supporting the gradual evolution toward data-driven smart hospital environments focused on efficiency, precision and improved patient outcomes.

Rising Instances of Cyber Attacks: As healthcare systems become more digital and interconnected, cybersecurity has become a critical concern for providers and vendors. In 2025, ransomware and cyberattacks rose sharply, with attacks increasingly targeting healthcare organizations and their service partners, disrupting operations and exposing patient data. Notable incidents included a 2025 breach at Central Maine Healthcare that affected over 145,000 patients and a late-2025 attack on New Zealand’s ManageMyHealth portal that impacted more than 120,000 records. Growing vulnerabilities in connected medical devices and hospital IT systems were further underscored by a January 2026 cyberattack that disrupted clinical services at a Belgian hospital.

Zacks Industry Rank

The Zacks Medical Info Systems industry falls within the broader Zacks Medical sector. It carries a Zacks Industry Rank #161, which places it in the bottom 34% of 244 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

We will present a few stocks with the potential to outperform the market based on a strong earnings outlook. However, it’s worth considering the industry’s shareholder returns and current valuation first.

Industry Underperforms S&P 500 and Sector

The industry has underperformed the Zacks S&P 500 composite as well as the sector over the past year.

The industry has lost 7.7% in the past year against the Zacks Medical sector’s growth of 24.7% and the S&P 500’s rise of 17.3%.

One Year Price Performance

Industry's Current Valuation

On the basis of forward 12-month price-to-sales (P/S), which is commonly used for valuing medical stocks, the industry is currently trading at 4.65X compared with the S&P 500’s 5.65X and the sector’s 2.35X.

Over the last five years, the industry has traded as high as 15.43X, as low as 3.60X, and at the median of 5.79X, as the charts below show.

Price-to-Sales Forward Twelve Months (F12M)

Price-to-Sales Forward Twelve Months (F12M)

3 Medical Info Systems Stocks to Bet On

Doximity stands out as a market leader in physician engagement, covering over 80% of U.S. doctors and 60% of advanced practitioners. Its 95% subscription-based revenue model, strong net revenue retention and consistent client upsell across pharma and health system verticals enhance predictability and reflect the embedded value Doximity delivers through long-term client relationships and workflow integration. The company is expanding across a $18.55 billion total addressable market, adding hiring, telehealth and workflow solutions to its core marketing model.

Doximity currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for fiscal 2026 earnings indicates a 9.9% improvement from the fiscal 2025 level.

Price and Consensus: DOCS

10x Genomics is a life science technology company, building products to accelerate the mastery of biology and advance human health. The company develops and sells instruments, consumables and software for analyzing biological systems in America, Europe, the Middle East, Africa, China, and the Asia Pacific. 10x Genomics’ integrated solutions include instruments, consumables and software for single-cell and spatial biology, which help academic and translational researchers and biopharmaceutical companies understand biological systems at a resolution and scale that matches the complexity of biology.

10x Genomics currently carries a Zacks Rank #2. The Zacks Consensus Estimate for 2025 earnings indicates a 72.4% improvement from the 2024 level.

Price and Consensus: TXG

Omnicell is positioning itself for long-term growth by addressing the healthcare challenges with enhanced medication management solutions. The introduction of the XT Amplify program is advancing the company’s goal of delivering outcome-centric innovations, having gained market traction with its initial offerings. Such efforts are bringing Omnicell closer to achieving the industry vision of the autonomous pharmacy. We expect the company’s revenues to witness a 2.8% CAGR during 2025-2027.

Omnicell currently holds a Zacks Rank #2. The Zacks Consensus Estimate for 2026 earnings indicates 6% growth from the 2025 projected level. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

Price and Consensus: OMCL

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Doximity, Inc. (DOCS): Free Stock Analysis Report
 
Omnicell, Inc. (OMCL): Free Stock Analysis Report
 
10x Genomics (TXG): Free Stock Analysis Report

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

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