Investor Focus: Medical Devices Stocks in 2Q

Shares of Chelmsford, Mass.-based Zoll, Arlington, Tenn.-based Wright Medical Group Inc. and Minneapolis-based Medtronic Inc. saw double-digit share gains as sales boomed.

Zoll's stock gained 33 percent over the quarter as Wall Street applauded the company's performance. During the first quarter, sales of its resuscitation devices helped drive a 40 percent jump to revenue of $99.2 million. The results prompted the company to boost its full-year profit outlook.

Shares of Wright Medical gained 22 percent on equally positive sentiment for the company's implantable heart devices and other medical products. International and domestic sales drove first-quarter revenue up 23 percent to $115.9 million, prompting Wright to lift full-year sales guidance to a range of $455 million and $465 million, from a prior forecast of $430 million to $440 million.

Medtronic, which began its fiscal first quarter in May, saw shares rise 7 percent since April as the company continues with its global restructuring program, which will trim jobs and consolidate operations.

Zimmer shares, meanwhile, fell 11 percent as Wall Street found knee and hip product sales slower than expected in the first quarter. Franklin Lakes, N.J.-based Becton, Dickinson and Co. and San Antonio, Texas-based Kinetic Concepts Inc. also lost ground despite meeting sales expectations.

Becton shares fell 8 percent during the quarter while Kinetic shares fell 10 percent.

Overall, Wall Street has a positive outlook for the medical device and technology sector moving forward, as aging populations in developed countries and booming markets in emerging economies continue driving sales.