The healthcare sector is likely to continue being a focus of investor attention, despite the fact that the COVID-19 epidemic is not over. Furthermore, technological developments and increased government spending are expected to drive the market for medical equipment/supplies to increase significantly over the next few months. ReWalk shares (RWLK), however, are less attractive now than their peers in medical equipment. Cardiovascular Varex (VREX), Utah Medical (UTMD), Systems (NASDAQ:), Varex System (NASDAQ:), and Utah Systems (NASDAQ). So, let’s discuss these names.The healthcare industry has garnered enviable investor attention since the onset of the COVID-19 pandemic. The healthcare industry should be in the spotlight, as new strains of the virus continue to emerge. In addition, President Biden’s “Build Back Better” plan has provisions to boost the healthcare industry. Medical devices are rapidly evolving with technological innovations and AI integration. Analysts predict that the market for medical devices will grow by 6.3% to $625.30 Billion in 2027.

ReWalk Robotics Ltd.’s shares have rallied against the backdrop of a Breakthrough Device Designation by the Food and Drug Administration (RWLK). The company’s fundamental strength is not sufficient to warrant the rally. RWLK’s revenue decreased 13.9% year-over-year to $1.44 million in its fiscal second quarter, ended June 30, while its non-GAAP net loss increased 7.7% from the same period last year to $2.87 million. RWLK’s valuation is also stretched. RWLK’s 16.48 forward price/sales multiple currently trades 105.1% over the 8.03 industry standard.

We believe small-cap stocks of medical equipment, Cardiovascular Systems, Inc., Varex Imaging Corporation, (NASDAQ:), Utah Medical Products, Inc., (UTMD), are better positioned than large-cap companies to capitalize on industry tailwinds.

Continue reading on StockNews