Hearing aid technology is a vital and often life-changing field, offering solutions to a significant global health issue: hearing loss. According to the World Health Organization, over 1.5 billion people worldwide experience some form of hearing loss, making it a very common sensory disorder. The impact of hearing loss can be profound, affecting communication, social interaction, and overall quality of life.
Key Takeaways:
- The hearing aid industry is experiencing significant growth, driven by technological advancements, an aging population, and increasing awareness of hearing health.
- Investing in hearing aid stocks offers a unique opportunity to support this vital area of healthcare and capitalize on the market’s potential.
- The top hearing aid stocks to consider for investment include Knowles Corporation, Innerscope Hearing Technologies, Envoy Medical, Sonova, and Energizer Holdings, each bringing unique innovations and solutions to the market.
Understanding the Hearing Aid Market
The hearing aid industry is experiencing a period of rapid innovation and growth, driven by the increasing prevalence of hearing loss and a growing demand for discrete, comfortable, and technologically advanced hearing solutions.
Market Size and Growth:
- The global hearing aids market, valued at $7.96 billion in 2023, is expected to grow at a 6.78% CAGR from 2024 to 2030. Projections indicate it will reach $12.57 billion by 2030, showing significant industry expansion. grandviewresearch
- Another report estimates the market size to be $20.66 billion in 2024 and projects it to reach $41.62 billion by 2035, with a CAGR of 6.58%. rootsanalysis
- The market is also expected to grow from $12.96 billion in 2023 to $34.76 billion by 2032, exhibiting a CAGR of 11.7%. fortunebusinessinsights
In recent years, regulatory changes have made hearing aids more accessible to consumers. In the United States, the Over-the-Counter Hearing Aid Act of 2017 allows certain types of hearing aids to be sold directly to consumers without the need for a medical prescription.
Performance Comparison of Top Hearing Aid Stocks
Here’s how these top hearing aid stocks have performed over the past year and their key applications:
| Company | 1-Year Return | Key Hearing Aid Stocks Applications |
|---|---|---|
| Knowles Corporation (KN) | +9.1% | Hearing aid components, including receivers and microphones, for a range of hearing devices. |
| Envoy Medical, Inc. (COCH) | -81.9% | Esteem Implant, a fully implantable middle ear hearing device providing natural sound quality. |
| Sonova (SONVY) | -0.2% | Broad portfolio of hearing aids, including behind-the-ear, in-the-ear, and receiver-in-canal styles. |
| Energizer Holdings (ENR) | +32.0% | Reliable battery solutions for hearing devices, ensuring long-lasting power. |
4 Best Hearing Aid Stocks to Buy In 2024
The companies we have listed are based on hedge fund interest, using data from Insider Monkey’s Q2 2024 report.
1. Knowles Corporation (NYSE: KN)
Number of Hedge Fund Holders (Q2 2024): 15
Knowles Corporation is a leading provider of advanced micro-acoustic solutions and hearing aid components. The company designs and manufactures balanced armature receivers and microphones, which are crucial components in modern hearing aids.
Knowles’ components are used in a wide range of hearing devices, including custom in-ear monitors for musicians and hearing aids for mild to severe hearing loss. Their receivers and microphones deliver clear and crisp sound, enhancing the user’s hearing experience.
According to insidermonkey, Ariel Investments, led by John W. Rogers, holds a $87.9 million stake in Knowles Corporation, comprising 5.1 million shares.
Knowles Corporation’s financial performance in Q1 2024 showed mixed results. While revenues increased year-over-year from $144.3 million to $196.4 million, they decreased compared to Q4 2023. The company managed to turn a profit of $2.5 million, an improvement from the $5.2 million loss in Q1 2023.
Operating earnings improved from a loss of $1.0 million in Q1 2023 to a profit of $4.3 million in Q1 2024. However, this was lower than the $13.6 million operating earnings in Q4 2023. The company also reported a gain on sale of asset of $5.4 million, contributing to its positive bottom line.
According to Wall Street Analyst on KN stock. Of the 4 analysts following the stock, 2 give it a Buy and 1 has it at Hold.
Why We Picked Knowles Corporation:
Knowles Corporation stands out for its market leadership and focus on innovation. Their products are integral to a wide range of hearing devices, ensuring optimal sound quality and performance. We believe their strong market position and commitment to research and development will drive sustained growth.
2. Envoy Medical, Inc. (NASDAQ: COCH)
Number of Hedge Fund Holders (Q2 2024): Nil
Envoy Medical, Inc. is a unique player in the hearing aid stock market, as it offers a fully implantable middle ear hearing device. The company’s Esteem Implant provides a natural hearing experience by directly stimulating the middle ear, bypassing the external auditory canal and ear canal resonance.
The Esteem Implant is designed for individuals with mild to severe sensorineural hearing loss. Unlike traditional hearing aids, it provides a natural sound quality and allows users to hear in a way that is similar to their natural hearing ability.
Envoy Medical, Inc. reported mixed financial results for Q1 2024. While revenue decreased from $78,000 to $59,000 year-over-year due to fewer battery replacement requests, the company saw increases in R&D and general administrative expenses. These increases were primarily attributed to expanding personnel in clinical, engineering, and administrative departments in preparation for the pivotal clinical study of the Acclaim Cochlear Implant (CI) and potential future growth. Despite these investments, sales and marketing expenses decreased due to reduced headcount.
The company’s focus remains on developing the Acclaim CI, a fully implanted cochlear implant designed to address severe to profound sensorineural hearing loss. This innovative device, which received FDA Breakthrough Device Designation in 2019, uses a sensor to capture sound by leveraging natural ear anatomy instead of a microphone. As of March 31, 2024, Envoy Medical had approximately $4.9 million in cash and cash equivalents to support its ongoing development and clinical efforts.
According to Wall Street Analyst on COCH stock. Of the 4 analysts following the stock, 4 give it a Buy.
Why We Picked Envoy Medical:
Envoy Medical, Inc. stands out for its innovative approach and unique product offering. Their Esteem Implant offers a truly differentiated solution in the market. We believe their groundbreaking technology and ability to address unmet needs will drive future growth and market demand.
3. Sonova (OTC: SONVY)
Number of Hedge Fund Holders (Q2 2024): Nil
Sonova is a leading global provider of hearing solutions, with a broad portfolio of hearing aid brands. The company’s products cater to a wide range of consumer needs, offering various styles, features, and price points.
Sonova’s hearing aids include behind-the-ear, in-the-ear, and receiver-in-canal styles, ensuring a solution for every type of hearing loss and consumer preference. Their products incorporate advanced features such as wireless connectivity, noise reduction, and rechargeable batteries.
Sonova Group’s financial year 2023/24 showed resilience amid challenges, with sales reaching CHF 3,626.9 million. Despite a 3.0% decrease in Swiss francs, the company achieved 3.2% growth in local currencies. The first half faced operational hurdles and the impact of a non-renewed US contract, but momentum improved in the second half. This upturn was driven by positive market response to the Phonak Lumity platform expansion and gradual market improvement.
Geographically, EMEA saw 3.8% growth in local currencies, while the US rebounded in the second half. The rest of the Americas grew 3.6%, and APAC increased by 7.1%, bolstered by acquisitions and strong performance in certain markets. However, currency fluctuations significantly impacted reported sales, reducing them by CHF 232.9 million and growth by 6.2 percentage points in Swiss francs.
According to Wall Street Analyst on SONVY stock. Of the 19 analysts following the stock, 5 give it a Buy and 12 has it at Hold.
Why We Picked Sonova:
Sonova checks all the boxes for our selection criteria. They demonstrate market leadership, a strong commitment to innovation, and a diverse product portfolio. Their ability to cater to a wide range of consumer needs makes them a compelling investment choice.
4. Energizer Holdings (NYSE: ENR)
Number of Hedge Fund Holders (Q2 2024): 14
While Energizer is primarily known for its battery products, the company also plays a significant role in the hearing aid market. Energizer provides reliable and long-lasting battery solutions for hearing devices, ensuring uninterrupted performance.
Energizer’s hearing aid batteries are designed to provide long-lasting power for various hearing aid styles. They offer zinc air batteries, known for their high energy density and stable performance, ensuring that hearing devices function reliably.
According to insidermonkey, GAMCO Investors, led by Mario Gabelli, holds a $42.5 million stake in Energizer Holdings, comprising 1.4 million shares.
Energizer Holdings, Inc. reported mixed fiscal 2024 second quarter results. While net sales decreased 3.0% and organic net sales declined 2.7%, the Auto Care segment showed growth. Gross margin improved, and adjusted earnings per share increased by 13% over the prior year.
The company maintained a strong cash flow position, with year-to-date operating cash flows of $214.9 million and free cash flow at 11.8% of net sales. Energizer paid down $141 million of debt in the first half of the year and reaffirmed its fiscal year outlook for key financial metrics.
According to Wall Street Analyst on ENR stock. Of the 9 analysts following the stock, 1 give it a Buy, 6 has it at Hold and 1 calls it a Sell.
Why We Picked Energizer Holdings:
Energizer Holdings brings stability and brand recognition to the hearing aid market. Their batteries are a critical component, ensuring uninterrupted performance. We believe their strong market presence and ability to meet the power demands of modern hearing aids will contribute to sustained growth.
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Determining the Right Hearing Aid for You
Picking the best hearing device is key, considering sound boost needs and lifestyle. Keep reading to learn more!
Types of Hearing Aids
Choosing the right hearing aid depends on many things. Features and fit are key. Here are some types:
- Behind-the-Ear (BTE): These rest behind your ear with a tube that sends sound into an ear mold inside your ear canal. They’re good for all kinds of hearing loss and all ages.
- In-the-Ear (ITE): These fit completely inside your outer ear. They have a hard plastic case that holds the electronics. They’re used for mild to severe hearing loss.
- Completely-in-Canal (CIC) and In-the-Canal (ITC): The smallest options, fitting partly or completely in the ear canal. Good for mild to moderate hearing loss, they’re less visible.
- Receiver-in-Canal (RIC): Similar to BTE aids but have a tiny wire instead of tubing, connecting the piece behind the ear to the receiver in the canal. It’s less visible and can fit mild to severe hearing loss.
- Rechargeable Hearing Aids: These have batteries you don’t replace. Just charge them like a phone or tablet at night, and they’re ready in the morning.
Each type has its pros and cons based on battery life, how much it can be seen, how it feels in your ear, and how well it amplifies sound. Next up, let’s compare prescription vs over-the-counter options to see what fits best for different needs.
Comparison of Prescription vs. OTC Options
Choosing between prescription and over-the-counter (OTC) hearing aids depends on your needs. Here’s a clear comparison:
| Feature | Prescription Hearing Aids | OTC Hearing Aids |
|---|---|---|
| Cost | More expensive due to customization and professional services | Less costly, making them accessible to more people |
| Customization | Highly customizable to the user’s specific hearing loss profile | Standard settings, with some adjustable features |
| Accessibility | Requires an appointment with an audiologist | Available online or at retail stores without a visit to a specialist |
| Advanced Features | Often includes advanced technological features and adjustments | May have basic features, lacking advanced technology |
| Support | Professional support from audiologists for adjustments and maintenance | Limited support, mostly DIY adjustments or online help |
| Insurance Coverage | Some or all costs may be covered by health insurance | Rarely covered by insurance, bought out-of-pocket |
Prescription aids offer customization and expert support. OTC options provide affordability and easy access. Your choice should align with your hearing needs, budget, and preference for professional guidance.
Factors to Consider Before Buying a Hearing Aid
When choosing a hearing aid, think about cost, if insurance will pay, and what type you need. Ready to learn more? Keep reading!
Cost and Affordability
The average cost for a pair of hearing aids hits $4,672. Yet, prices stretch from below $1000 to more than $6000 per set. For those eyeing less pricey options, over-the-counter (OTC) choices stand out.
They range between $300-$600 each device. This makes affordability crucial, especially for older adults seeking quality without breaking the bank.
Most insurance plans do not cover these devices fully. Some might help with the costs, but many leave users to pay out of pocket. It means shoppers must look closely at what they can afford before picking a hearing aid.
Checking with insurance on what’s covered can also guide this choice.
Insurance Coverage
Insurance coverage for hearing aids varies. Medicare, the government healthcare program for those 65 and older, does not pay for hearing aids. Yet, some Medicare Advantage plans include benefits for them.
On the other hand, Medicaid might cover the cost in certain states and for certain age groups.
Private insurance companies sometimes help with the costs too. They may not cover the full price but can offer partial payment for these devices. Always check your plan’s details or talk to an insurance agent to know what help you can get.
This step makes sure you understand how much of the expense falls on you.
Conclusion
Investing in hearing aid stocks presents a unique opportunity to support a vital area of healthcare and capitalize on the growing demand for hearing loss solutions. The top hearing aid stocks highlighted in this article bring diverse innovations and approaches to the market, catering to the varying needs and preferences of consumers.
FAQs
1. What makes digital hearing aids stand out in 2024?
Digital hearing aids, now with AI, offer sound amplification like never before. They use directional microphones… and feedback suppression for clear hearing. Plus, they’re easy to use with iPhones and Android devices.
2. Why are FDA approvals important for hearing aid stocks?
FDA approval means safety and effectiveness. It’s a big deal! For investors, it signals trust… and potential growth in companies like Phonak Audéo Lumity or Widex Moment.
3. Can advanced features boost stock value?
Yes! Features like tinnitus masking and telecoils attract customers seeking relief from ringing ears or wanting clearer phone calls… This drives sales up, making stocks more attractive.
4. How do health trends impact these stocks?
With rising awareness of dementia linked to untreated hearing loss, demand grows for solutions… Stocks in companies offering cognitive support through their products could see a boost.
5. Are there specific technologies investors should watch?
Absolutely! Look out for bone-anchored systems and cochlear implants by Advanced Bionics or GN Hearing… These offer solutions beyond traditional aids—targeting single-sided deafness or sensorineural issues.
6. What role does customer experience play in choosing stocks?
A great experience—from the initial hearing test to using the device daily—can lead to high customer satisfaction… Companies that excel here often get positive reviews from bodies like NCOA Adviser Reviews Team, hinting at strong future performance.
