3 Factors That Make CNMD a Risky Choice and One Alternative Stock Worth Considering

CONMED’s Recent Performance: A Closer Look

In the last half-year, CONMED’s stock price has dropped by 15.7%, now sitting at $45.91 per share. This decline stands in stark contrast to the S&P 500, which has climbed 7.2% during the same period. The weaker quarterly results have contributed to this underperformance, leaving investors to reconsider their strategies.

Is CONMED a smart addition to your portfolio, or does it carry more risk than reward?

Why We’re Not Enthusiastic About CONMED

Although the current share price may seem appealing, we’re holding off on CONMED for now. Here are three main reasons why we’re not excited about CNMD, along with a stock we prefer instead.

1. Slowing Revenue Growth

At StockStory, we prioritize sustainable long-term growth. However, in healthcare, focusing solely on the past can overlook recent changes and disruptive trends. CONMED’s revenue has grown at an annualized rate of 5.1% over the past two years, which is slower than its five-year average. We’re cautious when companies in this sector experience a slowdown in sales, as it may reflect shifting customer preferences and low barriers to switching providers.

Year-over-year revenue growth for CONMED

2. Limited Scale Restricts Growth Potential

Larger organizations often benefit from spreading their fixed costs—such as infrastructure, technology, and management—across more products or services, which lowers the cost per unit. This scale advantage can also lead to stronger supplier relationships, greater brand visibility, and more resources for investment. When executed well, these factors can reinforce a company’s competitive position.

With annual revenue of $1.37 billion, CONMED is relatively small in a sector where size matters. This makes it harder to establish credibility with customers, especially given the healthcare industry’s complexity, regulatory demands, and resource requirements.

3. Unfavorable Revenue Outlook

Analyst forecasts offer insight into a company’s future prospects. While predictions aren’t always precise, accelerating growth tends to boost valuations and share prices, while slowing growth can have the opposite effect.

Looking ahead, Wall Street expects CONMED’s revenue to decline by 1.3% over the next year—a sharp reversal from its 9.8% annualized growth over the past five years. This outlook suggests the company may face challenges in maintaining demand for its products and services.

Our Verdict

CONMED is not a poor business, but it doesn’t make our list of top picks. After its recent decline, the stock trades at 10.6 times forward earnings (or $45.91 per share). While this valuation isn’t unreasonable, the potential for gains appears limited compared to the risks. We believe there are more promising opportunities in the market right now. For example, take a look at one of our favorite digital advertising stocks.

Alternative Stocks to Consider

This year, the market has seen significant gains, but it’s important to note that just four stocks are responsible for half of the S&P 500’s total increase. Such concentration can be unsettling for investors. While many chase the same popular names, savvy investors are seeking out high-quality companies that are flying under the radar and trading at more attractive prices. Explore our Top 5 Strong Momentum Stocks for this week—a handpicked selection of high-quality stocks that have delivered a remarkable 244% return over the past five years (as of June 30, 2025).

Our list features well-known companies like Nvidia, which soared 1,326% from June 2020 to June 2025, as well as lesser-known names such as Tecnoglass, which achieved a 1,754% five-year return. Discover your next potential winner with StockStory today.