3 Mid-Cap Medical Stocks Outperforming the Market

Key Points

• Several mid-cap medical stocks, such as ADMA, PEN, and TMDX, are outperforming in 2025, showing resilience despite broader market weakness. 
• Penumbra, TransMedics, and ADMA Biologics have each posted substantial YTD gains (23%–48%), driven by earnings beats, bullish analyst sentiment, and sector momentum.
• Growth potential remains strong, with all three companies showing favorable forward P/E ratios and technical strength.

While major market indexes like the S&P 500 have struggled to gain traction in 2025 and remain in the red YTD, certain pockets of the market are showing impressive strength. Several medical and biotechnology sector mid-cap stocks have stood out for their resilience and outperformance. Investors looking beyond large-cap names may find compelling opportunities in mid-cap stocks that deliver strong growth and defy broader market weakness.

Here are three mid-cap medical stocks that have significantly outperformed the broader market so far this year. Each shows strong momentum, bullish analyst sentiment, and potential for continued upside.

Penumbra: A High-Growth Medical Devices Company Outperforming the Market

Penumbra, Inc. NYSE: PEN designs, develops, manufactures, and markets innovative medical devices used in neuro and vascular interventions. With a market capitalization of $11.3 billion, the company has emerged as a standout performer in the medical device space. While recession concerns and geopolitical uncertainty have weighed on equities broadly, Penumbra’s stock is up an impressive 23% year-to-date and 43% over the past 12 months.

The company reported strong first-quarter earnings on April 23, posting earnings per share of $0.83, beating consensus estimates by $0.17. Revenue climbed 16.3% year-over-year to $324.1 million, exceeding expectations of $315.7 million. Despite market volatility in April, Penumbra held its uptrend and trades just 5% below its 52-week high, indicating continued investor confidence.

Valuation remains elevated, with a trailing P/E ratio of 274, though its forward P/E of 58 better reflects its growth trajectory. Analysts remain bullish. Of the 17 analysts covering the stock, the consensus rating is a Moderate Buy, with a price target that points to further potential upside.

TransMedics Group: Momentum and Growth in Organ Transplant Technology

TransMedics Group NASDAQ: TMDX is a commercial-stage medical technology company revolutionizing organ transplant procedures. The firm’s flagship product, the Organ Care System (OCS), preserves donor organs in near-physiological conditions, significantly extending the window for transplantation. The company also offers the National OCS Program, a turnkey solution for organ retrieval and logistics.

The stock began to rally in April after breaking out above key resistance around $80. Since then, shares have gained substantial momentum and are now up nearly 48% year-to-date. The stock’s high P/E ratio of 91 may give some investors pause, but its forward P/E of 41 suggests strong earnings growth ahead.

Analysts are optimistic about the company’s outlook. Eleven analysts cover the stock, all contributing to a Moderate Buy consensus rating. The consensus price target implies up to 35% upside from current levels.

One catalyst and factor contributing to the stock's surge and momentum is its high short interest. As of April 15, short interest stood at 28% of the float, about 8.8 million shares. While down 7.3% from the prior month, the elevated level may contribute to a short squeeze dynamic, fueling the rally.

ADMA Biologics: Biotech Strength With Room to Run

ADMA Biologics NASDAQ: ADMA is a biopharmaceutical company that develops, manufactures, and markets plasma-derived biologics for treating immune deficiencies and infectious diseases. With a market cap of $5.6 billion, it’s one of the most impressive biotech performers of 2025, with shares up 38% year-to-date.

The stock is trading just 7% below its all-time high, which was reached in late April. Investors will be watching closely as the company is scheduled to report earnings on May 7. ADMA trades at a P/E of 29 and a forward P/E of 23, supported by projected EPS growth of 45% in 2025.

Despite limited analyst coverage, only four analysts cover the stock, all of them rate it as a Buy, reinforcing the stock’s strong growth profile and favorable risk-reward balance.