If you look at the chart for the iShares U.S. Medical Devices ETF (IHI) lately, you might think the sector is flatlining. After a decade of being the steady pulse of a healthcare portfolio, medical device stocks have entered 2026 in what can only be described as a state of cardiac arrest.
Between the rising GLP-1 fever and a new wave of tariff-induced margin pressure, the sector is currently waiting for a jolt of electricity to bring it back to life.
Here are IHI’s top 10, which make up nearly three-quarters of the entire exchange-traded fund (ETF). A mix of household names to consumers and familiar names to professional investors.
This industry ETF’s stock basket is not cheap at 30x earnings. That’s despite losing money (stock-price-wise) over the past 12 months.
The weekly chart indicates to me that there’s a “look out below” moment possible in the near future. As in $44 if the current selling pressure market-wide continues. That’s 20% or more to the downside. No guarantees there, just a note that risk is high.
Another way to view this is in the path of its ROAR score, which has declined steadily since peaking at 80 (very low risk) three months ago. As of this writing, IHI’s ROAR score sits down at 20, implying above-average risk of major loss.
Here is the “emergency room” report on why this former high-flyer needs the paddles.
The biggest threat to the medical device business, particularly the old guard within the group, isn’t a competitor. It’s a syringe. The explosion of GLP-1 weight-loss drugs like Zepbound and Wegovy has fundamentally changed the 2026 outlook for chronic disease management.
Investors are betting that if the world gets thinner, we will need fewer knee replacements, fewer heart valves, and fewer sleep apnea machines. While the actual data on procedure volume remains healthy for now, the fear of a future without chronic obesity is acting like a heavy sedative on these stock prices.
Medical devices are a global business with a massive dependence on international supply chains. The U.S. has ramped up significant tariffs on medical imports from China, Europe, and India. For some of these companies, this is a direct hit to the bottom line. They are facing a double squeeze of rising costs for components and a limited ability to raise prices for hospitals that are already operating on razor-thin margins.
