Investing.com -- Barclays said in a note Monday that it sees attractive entry points in MedTech stocks, as recent weakness in some sector leaders has created a buying opportunity despite the group’s strong year-to-date performance.
"BSX is acting like it’s back, up 7.0% since the lows on March 10, and Diabetes performance has improved as well, up 7.7% in the same period," Barclays (LON:BARC) analysts wrote.
However, they noted that Baxter (NYSE:BAX), Abbott, and Medtronic (NYSE:MDT) are down 9%, 8%, and ~4% since March 10, presenting potential buying opportunities despite these stocks leading MedTech year-to-date.
MedTech has outperformed the S&P 500 over the past seven days, rising 1.2% versus the S&P 500’s 0.5% gain.
Within the sector, Barclays noted that its Diabetes, SMID Pre-Scale, and Large-Cap Growth groups led the way, rising 4.7%, 1.7%, and 1.7%, respectively.
Among individual stocks, the bank highlights that Obio surged 10.5%, Alphatec gained 6.9%, and Tandem Diabetes climbed 5.8%, while AtriCure (NASDAQ:ATRC) dropped 24.6%, Baxter fell 4.0%, and Medtronic declined 2.9%.
Year-to-date, BAX, JNJ, MDT, OBIO, and BSX are leading the MedTech sector, posting gains of 13.8%, 13.1%, 13.1%, 12.8%, and 12.7%, respectively.
Barclays sees the recent pullback in some of these names as a chance for investors to enter at more attractive levels.
Looking ahead, Barclays remains positive on MedTech, seeing potential upside despite recent volatility.