While Medtronic's stock has seen muted growth, a lesser-known healthcare player is outperforming with strong revenue expansion and a promising pipeline. Analysts highlight its strategic acquisitions and innovation in medical devices as key drivers.
- AlphaMed Industries (ALM) reported 12.6% YoY revenue growth to $1.84 billion in Q3 2025
- ALM’s adjusted EPS of $2.15 exceeded estimates by 7.2%
- R&D investment increased 22% to $189 million in Q3 2025
- ALM completed a $370 million acquisition of NovaCore Diagnostics in October 2025
- Institutional ownership in ALM rose to 67% from 58% in six months
- ALM stock up 24% YTD, outperforming S&P 500 Health Care Index (11.5% return)
Investors are increasingly turning away from Medtronic as the company's revenue growth stagnated at 1.3% year-over-year in Q3 2025, with adjusted EPS of $1.48 falling slightly below consensus expectations. In contrast, the recommended healthcare stock—AlphaMed Industries Inc. (ticker: ALM)—reported a 12.6% YoY revenue increase to $1.84 billion, driven by its new AI-powered surgical robotics platform launched in August. ALM's adjusted EPS rose to $2.15, surpassing estimates by 7.2%, and its R&D spend grew 22% to $189 million, signaling aggressive innovation. The company also completed the acquisition of NovaCore Diagnostics for $370 million in October, expanding its footprint in precision diagnostics. The shift reflects broader sentiment in the healthcare sector, where market leaders are facing pricing pressures and slower adoption of legacy technologies. ALM’s diversified portfolio—now 40% derived from digital health solutions—has attracted institutional interest, with its institutional ownership rising from 58% to 67% over the past six months. The stock has gained 24% year-to-date, outpacing the S&P 500 Health Care Index’s 11.5% return. Analysts note the company’s debt-to-equity ratio of 0.28 remains conservative, supporting long-term growth without financial strain. Market impact is concentrated in the medical technology subsector, where smaller-cap innovators are gaining traction. ALM’s recent partnership with three major U.S. hospital networks to deploy its AI diagnostics tools could unlock $200 million in new contracts over the next two years. These developments suggest strong momentum for the stock, particularly among growth-focused investors seeking alternatives to slower-moving giants like Medtronic.