Medtech stocks closed May at their highest point since before the COVID-19 pandemic rocked the markets.
MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — sat at 87.17 points at the end of last week (May 29). That total represents a 2.3% gain from the 85.22-point total at the same time a week prior (May 22).
The lowest point during the pandemic remains at 62.13 on March 23. Since then, medtech stocks have experienced 40.3% growth in total, marking the highest rise the index has seen since its previous mid-pandemic high of 85.77 on May 4.
However, the stocks are down 5.6% since the index’s pre-pandemic crash high point of 92.32 on Feb. 19, although that is the smallest margin of decline over the past three months.
Compared to the S&P 500 Index, which experienced a 3% increase from May 22 to May 29, the medtech index took a similarly sizeable leap. The Dow Jones Index fared even better with a 3.8% increase over the same period of time.
More often than not, recent earnings reports are revealing negative results in large part due to COVID-19. Elective and sometimes even necessary medical procedures have mostly been put on the back burner while the focus is on the pandemic.
At the same time, countries around the world rely on the device industry to provide crucial supplies to fight the virus: tests, respirator masks, protective equipment, ventilators, infusion pumps, dialysis machines and more.
There have been some hopeful signs for the medical device industry recently. Medtronic CEO Geoff Martha, for example, recently reported that the world’s largest medical device company was already seeing signs of a rebound in the month of May. And a poll out from Gallup today found fewer Americans are worried about going to the doctor amid the pandemic.
Several companies have reported their quarterly financial results and made other important financial projections and business-related announcements. Here are the highlights: