In theory, medical technology companies should be some of the market’s best-performing stocks. After all, it’s not really a cyclical business, and price tags are rarely a stumbling block when insurance companies, the government and individuals with health-related challenges are footing the bill. But life science and diagnostic stocks have struggled, and they are just now showing signs of life.

In a recent report, Jefferies analysts did a careful stock-by-stock analysis, looking at items as different as government reimbursement and current short interest. When reviewing short interest, they generally concentrated on two primary metrics: the actual number of shares sold short as percentage of the float and the short interest coverage ratio (the number of trading days needed to cover the outstanding short interest position). What they came up with is the following list of stocks that investors can look to buy now.

Agilent Technologies Inc. (NYSE: A) leads off the Jefferies list of stocks to buy. The company  provides bio-analytical and electronic measurement solutions and services to the life sciences, chemical analysis, diagnostics and genomics, communications and electronics industries worldwide. The Jefferies price target is $50. The Thomson/First call estimate is close at $49. Investors are paid a 1.20% dividend.

Align Technology Inc. (NASDAQ: ALGN) recently won a big patent infringement case against a rival in the dental field, ClearCorrect. The Jefferies price target for the stock is $36. The consensus estimate is the same at $36.

Becton, Dickinson and Co. (NYSE: BDX) manufactures flow cytometry and cell-imaging systems, among other products in the medical field. The company’s strong brand and economies of scale have allowed it to earn outsized profits for many years. Jefferies has a price target of $110. The consensus price target for the stock is much lower at $94. Investors receive a 2% dividend.

Danaher Corp. (NYSE: DHR) designs, manufactures and markets professional, medical, industrial and commercial products and services primarily in North America, Europe and Asia/Australia. The Jefferies target for this stock, which is well followed on Wall Street, is $70. The consensus target is $68.

Exact Sciences Corp. (NASDAQ: EXAS) is a very volatile small cap name that makes the Jefferies list. The company is a molecular diagnostics company, focuses on developing diagnostic screening products for the early detection and prevention of colorectal pre-cancer and cancer. The Jefferies target for this very speculative name is $12, but the consensus is even higher at $13.50.

Myriad Genetics Inc. (NASDAQ: MYGN) has been hitting 52-week highs recently. Myriad focuses on the development and marketing of predictive, personalized and prognostic medicine tests, primarily in the United States. Jefferies has a price target of $31. The consensus target is right in line at $31. The stock closed above that on Friday.

Nanosphere Inc. (NASDAQ: NSPH) is a micro-cap name that makes the stocks to buy list. The company beat revenue expectations and reaffirmed 2013 guidance last week. The Jefferies price objective is $3.50. The consensus is also $3.50.

OraSure Technologies Inc. (NASDAQ: OSUR) is another micro-cap name to buy. The Jefferies price target for the stock is $12. The consensus is $10. Hitting either target is a gain in excess of 100%.

DENTSPLY International Inc. (NASDAQ: XRAY) wraps up the Jefferies list of stocks to buy. The company designs, develops, manufactures and markets a range of consumable dental products for the professional dental market worldwide. The Jefferies target is $44, and the consensus is $44 as well.

Despite ongoing worries about the effects of the Affordable Health Care Act (so-called Obamacare), many of the Jefferies stocks still have compelling business plans and earnings. Investors should also use their own due diligence when considering these names for their portfolio.

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