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Stryker (SYK) to Gain From Solid Portfolio and Acquisitions
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On Aug 18, we issued an updated research report on Kalamazoo, MI-based Stryker Corporation (SYK - Free Report) , one of the largest medical device companies in the global orthopedic market. The company currently has a Zacks Rank #2 (Buy).
Stryker had an impressive run on the bourse over the last three months, trading above the industry in terms of price performance. A glimpse at the price movement reveals that Stryker’s shares haves gained 4.1%, comparing favorably with the 2.9% rise of the industry it belongs to.
The company has a diverse product portfolio which cushions it against any significant sales shortfall during economic downturns. Stryker’s pipeline includes products for Hip, Knee and Mako Robotic-Arm Assisted Surgeries. MAKO results in the last quarter were solid, with almost 26 global robot installations, of which 24 were in the United States.
Furthermore, the platforms of bone cement, sports-medicine, bones substitute, soft tissue repair, trauma and extremities, endoscopy and more fortify the company’s market position.
Stryker has been following an acquisition-driven strategy to boost its growth profile. In June, the company announced a definitive agreement to acquire NOVADAQ Technologies Inc. for $11.75 per share or $701 million with a net purchase price of $654 million. The transaction is structured as an arrangement under the Canada Business Corporations Act and is subject to customary closing conditions, including approval by NOVADAQ’s shareholders.
Stryker has been focusing on international growth as well. In particular, the company’s Medsurg product line has witnessed strong demand in the European and Australian markets in the second quarter of 2017. On the flip side, China might prove to be a challenging market.
Stryker’s strong guidance is also a catalyst. For the third quarter of 2017, the company expects adjusted earnings in the range of $1.50–$1.55 per share. For the full year, the company estimates adjusted earnings in the band of $6.45–$6.55. Stryker expects organic sales growth of 6.5% to 7.0% for full-year 2017.
Edwards Lifesciences has a positive earnings surprise of 10.75% over the trailing four quarters. The stock has gained around 0.9% over the last three months.
Align Technology has a long-term expected earnings growth rate of 26.6%. The stock has rallied roughly 25.4% over the last three months.
Steris has a positive earnings surprise of 0.78% over two of the trailing four quarters. The stock has gained 13.1% over the last three months.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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Stryker (SYK) to Gain From Solid Portfolio and Acquisitions
On Aug 18, we issued an updated research report on Kalamazoo, MI-based Stryker Corporation (SYK - Free Report) , one of the largest medical device companies in the global orthopedic market. The company currently has a Zacks Rank #2 (Buy).
Stryker had an impressive run on the bourse over the last three months, trading above the industry in terms of price performance. A glimpse at the price movement reveals that Stryker’s shares haves gained 4.1%, comparing favorably with the 2.9% rise of the industry it belongs to.
The company has a diverse product portfolio which cushions it against any significant sales shortfall during economic downturns. Stryker’s pipeline includes products for Hip, Knee and Mako Robotic-Arm Assisted Surgeries. MAKO results in the last quarter were solid, with almost 26 global robot installations, of which 24 were in the United States.
Furthermore, the platforms of bone cement, sports-medicine, bones substitute, soft tissue repair, trauma and extremities, endoscopy and more fortify the company’s market position.
Stryker has been following an acquisition-driven strategy to boost its growth profile. In June, the company announced a definitive agreement to acquire NOVADAQ Technologies Inc. for $11.75 per share or $701 million with a net purchase price of $654 million. The transaction is structured as an arrangement under the Canada Business Corporations Act and is subject to customary closing conditions, including approval by NOVADAQ’s shareholders.
Stryker has been focusing on international growth as well. In particular, the company’s Medsurg product line has witnessed strong demand in the European and Australian markets in the second quarter of 2017. On the flip side, China might prove to be a challenging market.
Stryker’s strong guidance is also a catalyst. For the third quarter of 2017, the company expects adjusted earnings in the range of $1.50–$1.55 per share. For the full year, the company estimates adjusted earnings in the band of $6.45–$6.55. Stryker expects organic sales growth of 6.5% to 7.0% for full-year 2017.
Other Key Picks
Other top-ranked medical stocks are Edwards Lifesciences Corp. (EW - Free Report) , Steris Plc (STE - Free Report) and Align Technology, Inc. (ALGN - Free Report) . Edwards Lifesciences and Align Technology sport a Zacks Rank #1 (Strong Buy), while Steris carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Edwards Lifesciences has a positive earnings surprise of 10.75% over the trailing four quarters. The stock has gained around 0.9% over the last three months.
Align Technology has a long-term expected earnings growth rate of 26.6%. The stock has rallied roughly 25.4% over the last three months.
Steris has a positive earnings surprise of 0.78% over two of the trailing four quarters. The stock has gained 13.1% over the last three months.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>