The S&P 500 index is down more than 24% so far this year. While medical stocks are seen as more recession-proof than many other sectors, they haven't been immune to the market's decline. The healthcare sector is down more than 15% this year, while medical equipment stocks have been hit even harder, with the SPDR S&P Health Care Equipment ETF down more than 27%.
Two medical device companies bucking that trend are ShockWave Medical (NASDAQ: SWAV) and Cardinal Health (NYSE: CAH) , which are up more than 58% and 30% this year, respectively. ShockWave, founded in 2009, is a relatively new company, and Cardinal has been in business for more than 50 years, but both are seeing share growth backed up by their own strong financial fundamentals.
ShockWave Medical focuses on medical products to treat calcified cardiovascular disease. The company's devices use intravascular lithotripsy (IVL), basically sonic pressure waves, to break up calcium deposits in arteries, and can make it easier for stents to be inserted and be effective. The application of the technology to treat clogged arteries is new, but IVL has been used for more than 30 years to break up kidney stones.
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2 Medical Device Makers Crushing the Market