| Stock | Price | 52 Week Range | Marketcap | EPS | Dividend Yield | Chart (24H) | Sector | Employees | Last Updated |
|---|---|---|---|---|---|---|---|---|---|
| $81.03 | 103.90B | 3.27 | 3.20% | Healthcare | 95,000 | 3 days ago | |||
| $35.54 | 5.60B | 5.16 | 0.00% | Healthcare | 0 | 3 days ago | |||
 Moderna, Inc. MRNA | $39.39 | 15.16B | 5.81 | 0.00% | Healthcare | 5,600 | 3 days ago |
In an ever-evolving healthcare landscape, Artificial Intelligence (AI) stands out as a monumental force poised to revolutionize patient care. This groundbreaking technology is expected to significantly shorten drug development timelines, enhance medical devices, and refine robotic surgeries among other critical advancements. With such transformative potential, AI healthcare stocks are not just an investment; they represent a seismic shift towards more efficient and personalized medical care.
Investors eyeing AI in healthcare should note that the market is projected to surge by 48%, reaching an impressive $148.4 billion by 2029. Remarkably, AI in healthcare could save over 250,000 lives annually, adding a deeper layer of appeal to AI-powered healthcare stock picks. Here are three stocks leading the charge in this revolutionary sector.
Editor's Note: Analysis and insight for this article were originally sourced sourced from our friends at InvestorPlace
Medtronic (NYSE: MDT)
Why It’s a Good Investment:
Medtronic is a behemoth in the medical device industry, with a deep and diversified pipeline covering diabetes, cardiovascular health, and neuroscience. As a frontrunner in AI adoption, Medtronic boasts six pioneering AI products, all approved by the FDA. Highlights include the GI Genius, the first AI-powered endoscopy system for detecting polyps, and the MiniMed 780G, an advanced diabetes management system.
The company’s recent inauguration of an AI center of excellence exemplifies its unwavering commitment to pushing the boundaries of AI applications in medical technology. Beyond just innovation, Medtronic leverages AI to add to the mission-critical nature of its healthcare offerings. Financially, the firm is robust, boasting a massive levered free cash flow balance exceeding $5.46 billion. This financial cushion ensures that Medtronic has the resources to sustain and expand its AI initiatives.
But Medtronic’s allure doesn’t stop there. The broad application of AI across its healthcare solutions positions it as a key player capable of driving significant advancements in the medical device sector. For investors keen on both innovation and financial stability, Medtronic is a compelling choice.
Analyst Ratings and Forecasts:
| Metric | Value |
|---|---|
| Consensus Rating | Overweight |
| Average Price Target | $123.44 |
| Potential Gain | 12.1% |
| Number of Ratings | 24 |
Summary of Analysts’ Outlook:
Analysts have a positive outlook on Medtronic, with a consensus “Overweight” rating. The average price target suggests a potential gain of 12.1% from the current price. Most analysts believe the company’s strong product pipeline, growing demand for its medical devices, and cost-saving initiatives will drive growth and improve profitability.
Source: JHVEPhoto / Shutterstock.com
Tempus AI (NASDAQ: TEM)
Why It’s a Good Investment:
Tempus AI, a life sciences firm with a sizzling recent IPO, brings a breath of fresh air to oncology diagnostics. With an extensive library of clinical and molecular data, Tempus has the potential to redefine this critical field through advanced AI applications. The company’s data supports its rapidly growing data services business, making it a formidable player in the healthcare industry.
Tempus has recently expanded its immuno-oncology portfolio with the launch of multimodal immune profile algorithmic tests, enhancing its diagnostic capabilities. Additionally, its AI-powered ECG-AF device, which can identify patients at an increased risk of atrial fibrillation, has received significant attention, further establishing the firm’s innovative edge.
Looking forward, analysts are highly optimistic about Tempus’s growth trajectory. J.P. Morgan analyst Rachel Vatnsdal projects a substantial 33% growth in its top line by 2027, with the expectation of achieving EBITDA positivity by the second half of 2025. She highlights Tempus’s robust patient database, which integrates clinical and genomic data, as a key driver of its future success. With such promising prospects, Tempus AI stands out as an exceptional investment in the AI healthcare sector.
Analyst Ratings and Forecasts:
| Metric | Value |
|---|---|
| Consensus Rating | Hold |
| Average Price Target | $18.44 |
| Potential Gain | 10.3% |
| Number of Ratings | 4 |
Summary of Analysts’ Outlook:
Analysts have a generally neutral outlook on Tempus AI, with a consensus rating of “Hold.” The average price target of $18.44 suggests a potential gain of 10.3% from the current price. While there are no strong buy or sell recommendations, the overall sentiment is cautiously optimistic.
Source: T. Schneider / Shutterstock.com
Moderna (NASDAQ: MRNA)
Why It’s a Good Investment:
Moderna rose to prominence with the rapid creation of its coronavirus vaccine, proving its capability for fast, innovative responses. However, the post-pandemic world has brought new challenges, especially with a rapid decline in COVID-19 vaccine sales. Nevertheless, Moderna’s proactive approach to incorporating AI offers a silver lining.
Partnerships are key to Moderna’s strategy, and its collaboration with IBM stands out. Leveraging IBM’s AI model MolFormer, Moderna can predict molecular properties more efficiently, accelerating the development of mRNA-based therapies. This partnership is structured to significantly speed up research processes and streamline the path to developing new treatments.
CEO Stéphane Bancel firmly underscores AI’s growing importance in Moderna’s workflows. This commitment to utilizing AI across all facets of its operations aims to improve performance and efficiency. Even amid market challenges, the market recognizes Moderna’s potential, with its stock gaining upwards of 19.5% year-to-date. Investors should note that Moderna’s integration of AI signifies more than just a tactical shift; it is a strategic maneuver designed for long-term innovation and growth.
Analyst Ratings and Forecasts:
| Metric | Value |
|---|---|
| Consensus Rating | Overweight |
| Average Price Target | $173.14 |
| Potential Gain | 23.1% |
| Number of Ratings | 21 |
Summary of Analysts’ Outlook:
Analysts are overwhelmingly bullish on Moderna, with 14 out of 21 analysts rating the stock as “Buy” or “Overweight.” The average price target of $173.14 suggests a potential gain of 23.1% from the current price. This optimism is likely driven by the company’s strong pipeline of mRNA-based vaccines and therapies, as well as its leadership in the COVID-19 vaccine space.
Source: Tada Images / Shutterstock.com
AI’s transformative capabilities in healthcare are undeniable. Medtronic, Tempus AI, and Moderna are at the cutting edge of this revolution, offering advanced solutions and significant growth potential. As the healthcare market gears up for a seismic shift, these stocks represent golden opportunities for astute investors.
