ARTICLE SUMMARY:
Years of macro and policy headwinds have dragged down medtech valuations, but the industry may be entering a period where fundamentals and innovation reignite investor sentiment. Strategics and private equity alike are repositioning their portfolios around new, higher‑growth opportunities. The AAOS meeting in New Orleans will offer a look at how aggressively the sector is preparing for its next growth leg. Watch our interview with Ryan Zimmerman of BTIG and Masha Dumanis of Kx Advisors.
From 2010 to 2020, the medtech sector outperformed relative to the S&P 500, but between 2021 and 2025, the tables turned. Medtech became the worst performing subsector in healthcare. Its historic 30% premium to the S&P shrunk to roughly 2%, leaving many high-quality device companies trading at “discounted” levels.
Entering 2026, medtech looks like an “opportune time to invest” because valuations have reset while fundamentals, including demand for procedures and capital equipment expenditures, remain intact, says Ryan Zimmerman, managing director and senior equity analyst, medical devices at BTIG, in a video interview.
