President Donald Trump is planning an executive order soon in a bid to address the lack of medical product manufacturing in the United States amid the coronavirus outbreak, the White House said on May 4. The United States has seen a medical product crunch in recent times to fight the ongoing pandemic.
This has seen Trump time and again urge many U.S. companies to ramp up production of medical gear like facial masks and hospital ventilators. An executive order would now in all likelihood require federal agencies to purchase U.S.-manufactured medical products.
Trump to Extend “Buy America” Requirements to Medical Products
The White House on Monday said that Trump intends to come up with an executive order to address the lack of manufacturing of medical products in the United States. Trump’s trade advisor Peter Navarro told Fox News that the coronavirus outbreak has exposed United States’ over-reliance on China.
An executive order would require federal agencies to buy U.S.-made medical products. Navarro, without giving much detail, said that the move would extend the “Buy America” requirements to pharmaceuticals and medical products. The proposed order has already received strong resistance from business leaders who feel that curbing imports could lead China to tighten urgently needed shipments of N95 masks.
In March, around 80 groups had warned that such an executive order could worsen the situation with shortage of medical equipment and drugs to fight the fast-spreading COVID-19. However, such a move could also at the same time help U.S. companies to ramp up production of medical products.
Trump Critical of China, U.S. Companies
The United States has faced a shortage of medical equipment and dugs including facial masks and ventilators amid the coronavirus pandemic. This has seen Trump often slamming U.S. companies to ramp up production of medical equipment.
Last month, Trump slammed 3M Company MMM to speed up production of N95 respirators, following which the company promised to import back billions of facial masks from China. The President had also urged carmakers like Ford Motor Company F and General Motors GM to come forward and manufacture ventilators to help the country’s healthcare system. The United States has also lately accused China of sending low-quality and even counterfeit coronavirus antibody testing kits to the United States and raking profits from the pandemic.
Needless to say, the coronavirus pandemic has once again soured relationship between the United States and China. The Trump administration is now weighing new tariffs and efforts are underway to reduce reliance on medical products. Given this scenario, it may be prudent to say that these four stocks are set to gain.
Zynex Inc. ZYXI engineers, manufactures, markets and sells medical devices for the electrotherapy, and stroke and spinal cord injury rehabilitation markets primarily in the United States.
The company’s expected earnings growth rate for the current year is 42.9%. The Zacks Consensus Estimate for current-year earnings has improved 14.3% over the past 60 days. Zynexhas a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
LeMaitre Vascular, Inc. LMAT develops, manufactures and markets disposable and implantable vascular devices to address the needs of vascular surgeons and interventionalists.
The company’s expected earnings growth rate for the current year is 5.7%. LeMaitre’s shares have gained 10.5% in the past 30 days. It has a Zacks Rank #2 (Buy).
MacroGenics, Inc. MGNX is a biopharmaceutical company focused on discovering and developing innovative monoclonal antibody-based therapeutics.
The company’s expected earnings growth rate for the current year is 5.4%. Its shares have gained 36.5% in the past 30 days. MacroGenics carries a Zacks Rank #2.
Quidel Corporation QDEL discovers, develops, manufactures and markets point-of-care, rapid diagnostic tests for detection of medical conditions and illnesses.
The company’s expected earnings growth rate for the current year is 3%. Its shares have gained 46.3% in the past 30 days. MacroGenics carries a Zacks Rank #1.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ford Motor Company (F) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Quidel Corporation (QDEL) : Free Stock Analysis Report
Zynex Inc. (ZYXI) : Free Stock Analysis Report
MacroGenics, Inc. (MGNX) : Free Stock Analysis Report
LeMaitre Vascular, Inc. (LMAT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research