MILLBURN, N.J. ( Stockpickr) -- I have spent the better part of the last week sitting in the hospital with my wife, who had surgery, which gave me an opportunity to observe what goes on within a hospital and take notice of the products used by the clinicians and patients.Heath care is currently estimated to account for about 16% of the U.S. gross domestic product. That amount is only expected to grow once the recently passed health care legislation takes effect and as our nation's population ages. >>Also: 4 Safest Health Care Stocks Based on my recent time at the hospital, I've gathered together a portfolio of medical devices and technology stocks. I am not a big fan of the pharmaceutical industry, but I foresee the medical devices and technology sectors as a source of stable low-risk growth in the future as more money is focused on health care and baby boomers enter their golden years. >>Also: Top-Rated Health Care Technology Stocks
While in the pre-op room, my wife had to sign several documents. One of them was a waiver for a surgical device (I believe it was for a screw or pin) manufactured by medical device and equipment company Stryker ( SYK).
Zimmer Holdings ( ZMH) is a smaller but close competitor to Stryker. Zimmer delivers consistent 10% annual earnings growth and sells for about 13 times the current year's earnings, making it a bit cheaper than Stryker.
When it comes to hospital beds, one company has a virtual lock on the business: Hill-Rom Holdings ( HRC), which makes the hospital beds that allow patients to control head and foot elevation, communicate with nursing staff and remotely access the in-room television. Hill-Rom also manufactures a variety of surgical, orthopedic and other medical devices and products.
If you have ever watched Showtime's Nurse Jackie, you're familiar with the Pyxis machine, which is sort of like ATM for drugs . On the TV show, the nurses try to revolt against the machine, but in real life, Pyxis machines are widely accepted by the nursing community.
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