Why Neuronetics, Inc. (STIM) is Surging in 2025
We recently published a list of . In this article, we are going to take a look at where Neuronetics, Inc. (NASDAQ:STIM) stands against other healthcare stocks that are surging in 2025.
After lagging behind the broader market in 2024, many healthcare stocks are making a comeback this year. Healthcare spending has been continuously soaring and is projected to do so in the coming years due to demographic tailwinds. The industry now accounts for a fifth of the U.S. economy, and it's a good idea to have exposure to it.
Most executives now hold a favorable view of the industry's prospects, a notable increase from 52% just a year ago. Moreover, it's an industry that is more insulated from tariffs and macro risks.
Of course, the top gainers here are not defensive healthcare stocks, but it's still worth looking into the winners here if you are chasing potential multibaggers.
Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified in another article.
For this article, I screened the best-performing healthcare stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().
A lab technician gazing into a microscope, analyzing sample slides for medical technology research.
Number of Hedge Fund Holders In Q4 2024: 5
Neuronetics, Inc. (NASDAQ:STIM) is a medical device company that manufactures and markets NeuroStar Advanced Therapy, a leading transcranial magnetic stimulation (TMS) system for treating major depressive disorder and other mental health conditions.
The stock's strong performance in early 2025 was driven by several transformative developments. The most impactful was the completion of its acquisition of Greenbrook TMS in December 2024. This deal combined Neuronetics' technology with Greenbrook's network of over 95 clinics, creating a vertically integrated leader in mental health therapy delivery and unlocking over $22 million in annualized cost synergies.
Neuronetics, Inc. (NASDAQ:STIM) also reported preliminary full-year 2024 revenue of $74.5 million, with pro forma revenue (including Greenbrook) at $129.8 million. The company issued 2025 guidance for 12% to 19% year-over-year revenue growth and projected cash flow breakeven by the third quarter of 2025.
Another major catalyst was the FDA's clearance in March 2024 for NeuroStar as a first-line add-on treatment for adolescent depression, expanding the addressable market by 35% and supporting future growth.
The consensus price target of $5.5 implies 22.77% upside.
Neuronetics, Inc. (NASDAQ:STIM) stock is up 178.26% year-to-date.
Overall, STIM ranks 5th on our list of healthcare stocks that are surging in 2025. While we acknowledge the potential of STIM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than STIM but that trades at less than 5 times its earnings, check out our report about this .
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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