We recently published a list of 11 Unstoppable Growth Stocks to Invest in Now. In this article, we are going to take a look at where TransMedics Group, Inc. (NASDAQ:TMDX) stands against other unstoppable growth stocks to invest in now.
BlackRock highlighted that the trade conflict between the US and China continues to cause major economic disruptions. However, the expectations of a supply-driven contraction in the US are very different from a typical business cycle recession. The hard economic rules binding on policy are expected to limit the damage. Furthermore, the AI mega force has been keeping the firm overweight on the US stocks and positive on developed market stocks, despite the expectations of volatility.
Focus Areas Amidst Tariff Worries
BlackRock believes that some of the sectors are more exposed to tariffs as compared to others, with sectoral differences already at play in the earnings releases for Q1 2025. The companies that are at the forefront of the AI mega force continued to keep fueling the US equity strength, while policy uncertainty significantly impacts the broader market. The leading technology companies managed to exceed the Q1 earnings expectations, highlighted the increasing AI-driven demand, and announced plans to raise investments focused on AI.
Such trends strengthen the fact that how AI mega force continues to persist despite the supply-driven disruptions. As a result, BlackRock has remained positive on developed market (DM) stocks, primarily the US. On the other hand, automakers have been tagged by the firm as the ones most exposed to key supply inputs from China. Furthermore, some of the automakers have highlighted the impact of tariffs in their respective expectations for full-year earnings.
Franklin Templeton believes that it is of utmost importance to remember that tough economic and/or market phases are finite. Investors who tend to see most of the profits during the recovery are the ones staying the course during the stormy weather. The investment firm continues to see increased potential for a sustained period of small-cap leadership. Considering its metric of choice to gauge index valuations, EV/EBIT, the Russell 2000 is far more attractively valued as compared to the Russell 1000, says Franklin Templeton.
As per the investment manager, the valuation situation becomes even more attractive when consensus earnings growth is included. Notably, growth stocks are the ones capable of increasing their earnings faster as compared to an average business in the respective industry or broader market. At 2024 end, the Russell 2000 was expected to see stronger earnings growth in 2025 as compared to the Russell 1000, based on EPS, added the investment firm.
Our Methodology
To list the 11 Unstoppable Growth Stocks to Invest in Now, we used a screener to shortlist the companies catering to the growth sectors that have 3-year revenue growth of at least ~25%, and that have appreciated significantly on a YTD basis. We also mentioned hedge fund sentiments around each stock, as of Q4 2024. Finally, the stocks were arranged in ascending order of their hedge fund sentiment.
Note: The data was recorded on May 9.
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 (see more details here).
Is TransMedics Group, Inc. (TMDX) the Unstoppable Growth Stock to Invest in Now?
A surgeon in a modern operating theatre performing a transplant surgery with medical technology.
TransMedics Group, Inc. (NASDAQ:TMDX) is a commercial-stage medical technology company that is engaged in transforming organ transplant therapy for end-stage organ failure patients throughout multiple disease states. William Blair analyst, Ryan Daniels, reiterated the bullish stance on the company’s stock, giving a “Buy” rating on May 6. The analyst’s rating is backed by a combination of factors demonstrating TransMedics Group, Inc. (NASDAQ:TMDX)’s healthy financial performance and promising growth prospects. As per the analyst, the company reported impressive Q1 2025 results, with sales significantly exceeding expectations and a notable increase in EPS.
The financial strength is further bolstered by the management’s decision to increase guidance for 2025, reflecting confidence in sustained growth, added Daniels. TransMedics Group, Inc. (NASDAQ:TMDX) posted total revenue of $143.5 million in Q1 2025, reflecting a 48% rise as compared to Q1 2024. Furthermore, the analyst has highlighted the competitive advantages of TransMedics Group, Inc. (NASDAQ:TMDX)’s NOP platform, which provides clinical and operational benefits that can help maintain its market position amidst emerging competition. The company’s capability to reap the benefits from new opportunities, together with potential for higher adoption of its platform over the upcoming years, further cements its footing as a compelling growth story, added Daniels.
Renaissance Investment Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“TransMedics Group, Inc. (NASDAQ:TMDX) detracted the most from performance in the quarter as the organ trans plant solutions company reported third-quarter results that were modestly below expectations. However, the company’s proprietary organ preservation system coupled with its logistics solutions should allow significant opportunities for market-share gain for a number of years, and we believe that long-term growth opportunities remain intact.
Overall, TMDX ranks 5th on our list of unstoppable growth stocks to invest in now. While we acknowledge the potential of TMDX as an investment, our conviction lies in the belief that some deeply undervalued 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 a deeply undervalued AI stock that is more promising than TMDX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
