The business outlook for medical-device companies is clearly improving. The danger to their stock prices hasn’t gone away, though. Second-quarter results from health-care bellwethers Johnson & Johnson and Abbott Laboratories on Thursday were stronger than Wall Street expected. J&J raised its 2020 profit outlook, while Abbott issued better guidance than analysts were expecting. Shares of both are near records, as is a broad index of smaller device companies.

Source: Wall Street Journal July 19, 2020 13:52 UTC