Shares of Nano-X Imaging (NASDAQ: NNOX) are up more than 135% to start the year after the company got approval in April from the Food and Drug Administration (FDA) for its Nanox.ARC system. It may be too late to benefit from the stock's rise, but GE HealthCare Technologies (NASDAQ: GEHC) and Lantheus Holdings (NASDAQ: LNTH) are also involved with medical imaging and are less risky plays.

Nano-X was founded in 2011 and went public in 2021. The stock concerns me because of the oversized run-up in its price and because Nano-X only has $91 million in cash. The company showed improved revenue in the first quarter, but it is still losing money. Nano-X reported $2.4 million in revenue, up 25% year over year, and a net loss of $11.8 million, compared to a loss of $21.7 million in the same period last year. It will need to spend additional money to bring the Nanox.ARC system to market.

There's plenty of opportunity in medical imaging thanks to the growth in chronic diseases and the aging of our population. A report by GlobalData says the global diagnostic imaging market will reach $31.9 billion this year and, with a compound annual growth rate of 4.8%, will reach a $45.8 billion market by 2030. 

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Source Fool.com