Managing Editor’s Note: Matt has a Power Stock to help you kick off 2023. Before you read on, click here to take our one-question survey. We want to know what your top concern for 2023 is. It could be as simple as “inflation” or “saving for retirement,” but let us know. It’ll help us make Stock Power Daily your go-to source for investing insights as the year gets underway. Click here to submit your response now. And thank you for participating! — Chad Stone
Getting old sucks.
I feel more pain in my knees and back…
When I’m aching, I shy away from taking medicine … that’s just me.
Instead, I’ll seek out other forms of pain management such as heat, cold or even electrotherapy.
Research company Mobility Foresights projects the value of the medical devices market in the U.S. will reach $312.3 billion by 2027.
In 2021, that number was only $226.1 billion.
So the value of the medical device market is expected to increase more than 38% in just seven years!
I’ve found a way we can profit from this trend.
Today’s Power Stock is Zynex Inc. (Nasdaq: ZYXI), a $517 million medical device company that provides pain-relief products to individuals, hospitals and surgery centers.
Zynex’s Stock Power Ratings
Englewood, Colorado-based Zynex sells electrotherapy medical devices used for pain management and rehabilitation.
Its products include back and knee braces, as well as devices that provide hot and cold therapy for various injuries.
Fun fact: Zynex was ranked No. 11 on Forbes’ list of America's Best Small Companies for 2023.
Zynex stock scores 98 out of 100 on our Stock Power Ratings system, and we expect it to beat the broader market by 3X in the next 12 months.
Zynex Stock: Outstanding Growth + Solid Momentum
Zynex recently closed out a third quarter that should excite anyone thinking about investing in its stock.
High points include:
- Net income of $4.9 million — a 46% year-over-year increase.
- Total orders were 34% higher year over year — the second-straight quarter of record orders.
As you can see, ZYXI has strong bottom-line growth — scoring a 98 on our growth factor.
It also shines as a quality stock … scoring a 97 on that factor.
Its returns on assets, equity and investment are all double digits, while its peers average negative returns.
The company has a gross margin of 82.5%. Its general medical device industry peers average 63.3%.
This tells us ZYXI’s management knows how to turn a profit.
Over the last 12 months, Zynex stock has moved 53.5% higher.
Its general medical device peers averaged a 16.7% decline over the same time.
Since releasing its recent quarterly report, ZYXI stock has soared 50% higher in only a couple of months.
And it looks set for more gains based on its 98 overall score on our proprietary Stock Power Ratings system.
We’re “Strong Bullish” and expect it to beat the broader market by at least three times in the next 12 months.
We all deal with pain from time to time.
When we’re aching, we want the quickest relief possible
As a provider of pain management products in the U.S., ZYXI is a strong contender for your portfolio.
Stay Tuned: A Look Back at One of 2022’s Biggest Trends
Tomorrow, I’m doing something a little different.
I’m going to show you how value beat growth in 2022, and how we capitalized on that trend in Stock Power Daily.
Matt Clark, CMSA®
Research Analyst, Money & Markets