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Here's Why You Should Invest in Stryker (SYK) Stock Right Now
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Stryker Corporation (SYK - Free Report) has been gaining investors’ confidence on continued positive results. Over the past year, the company’s stock has outperformed its industry. The stock has declined 0.2% in comparison to the industry’s 5.1% fall. Also, the company has outperformed the S&P 500’s 6.5% decline.
This renowned medical device company operating in the global orthopedic market has a market cap of $59.12 billion. The company has an earnings growth rate of 10% for the next three to five years.
With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick for investors at the moment.
What’s Working in Favor of the Stock?
Strength in Robotics – Mako Momentum Continues
Mako is Stryker’s robotic-arm assisted surgery platform. Recently, Stryker launched the robotic-arm assisted total knee arthroplasty application for use with its Mako System. Notably, this is the first and only robotic technology which can be used for total knee, hip and partial knee replacement procedures.
The third quarter of 2018 witnessed another impressive show by the Mako Total Knee platform on a significant year-over-year increase in new robot installations. In the quarter, Stryker installed a total of 37 robots globally, with 26 in the United States. This is a solid gain considering that the respective figures from the year-ago quarter were 33 and 23. Management is also bullish about the fact that the company is approaching the installation of 600 robots globally.
Diversified Product Portfolio
Stryker has a diversified product portfolio. Its wide range of products cushions the company from any significant sales shortfall during economic downturns. Its significant exposure in robotics, Artificial Intelligence for health care and Medical Mechatronics has provided the company with a competitive edge in the MedTech space. Stryker’s portfolio includes products like Hip, Knee and Mako Robotic-Arm Assisted Surgeries.
Apart from these, Stryker has been one of the early adopters of the 3D printing technology. The company’s FDA-approved Tritanium TL Curved Posterior Lumbar Cage is a 3D-printed interbody fusion cage intended for use as an aid in lumbar fixation.
Solid International Growth
Stryker is focusing on international growth. A significant turnaround in the company’s European business owing to its effective restructuring measures represents a potential upside.
In the third quarter of 2018, the company’s international sales rose 4.5%, year over year to $861 million. Per management, emerging markets grew double digits in the third quarter. The company’s core Orthopaedics segment delivered organic growth of 6.2% on solid performances in Europe, emerging markets and Australia.
Which Way Are Estimates Treading?
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $2.16, reflecting a year-over-year increase of 10.2%. The same for revenues stands at $3.73 billion, indicating a 7.5% rise year over year.
For the full year, the Zacks Consensus Estimate is pegged at earnings of $7.28. The same for revenues stands at $13.53 billion, indicating an 8.8% rise year over year.
Other Key Picks
Other top-ranked stocks in the broader medical space are Integer Holdings Corporation (ITGR - Free Report) , Surmodics, Inc. (SRDX - Free Report) and Veeva Systems (VEEV - Free Report) .
Integer Holdings, with a Zacks Rank #2, has an earnings growth rate of 31.2% for the first quarter of 2019.
Surmodics’ long-term earnings growth rate is projected at 10%. The stock carries a Zacks Rank of 2, currently.
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Here's Why You Should Invest in Stryker (SYK) Stock Right Now
Stryker Corporation (SYK - Free Report) has been gaining investors’ confidence on continued positive results. Over the past year, the company’s stock has outperformed its industry. The stock has declined 0.2% in comparison to the industry’s 5.1% fall. Also, the company has outperformed the S&P 500’s 6.5% decline.
This renowned medical device company operating in the global orthopedic market has a market cap of $59.12 billion. The company has an earnings growth rate of 10% for the next three to five years.
With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick for investors at the moment.
What’s Working in Favor of the Stock?
Strength in Robotics – Mako Momentum Continues
Mako is Stryker’s robotic-arm assisted surgery platform. Recently, Stryker launched the robotic-arm assisted total knee arthroplasty application for use with its Mako System. Notably, this is the first and only robotic technology which can be used for total knee, hip and partial knee replacement procedures.
The third quarter of 2018 witnessed another impressive show by the Mako Total Knee platform on a significant year-over-year increase in new robot installations. In the quarter, Stryker installed a total of 37 robots globally, with 26 in the United States. This is a solid gain considering that the respective figures from the year-ago quarter were 33 and 23. Management is also bullish about the fact that the company is approaching the installation of 600 robots globally.
Diversified Product Portfolio
Stryker has a diversified product portfolio. Its wide range of products cushions the company from any significant sales shortfall during economic downturns. Its significant exposure in robotics, Artificial Intelligence for health care and Medical Mechatronics has provided the company with a competitive edge in the MedTech space. Stryker’s portfolio includes products like Hip, Knee and Mako Robotic-Arm Assisted Surgeries.
Apart from these, Stryker has been one of the early adopters of the 3D printing technology. The company’s FDA-approved Tritanium TL Curved Posterior Lumbar Cage is a 3D-printed interbody fusion cage intended for use as an aid in lumbar fixation.
Solid International Growth
Stryker is focusing on international growth. A significant turnaround in the company’s European business owing to its effective restructuring measures represents a potential upside.
In the third quarter of 2018, the company’s international sales rose 4.5%, year over year to $861 million. Per management, emerging markets grew double digits in the third quarter. The company’s core Orthopaedics segment delivered organic growth of 6.2% on solid performances in Europe, emerging markets and Australia.
Which Way Are Estimates Treading?
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $2.16, reflecting a year-over-year increase of 10.2%. The same for revenues stands at $3.73 billion, indicating a 7.5% rise year over year.
For the full year, the Zacks Consensus Estimate is pegged at earnings of $7.28. The same for revenues stands at $13.53 billion, indicating an 8.8% rise year over year.
Other Key Picks
Other top-ranked stocks in the broader medical space are Integer Holdings Corporation (ITGR - Free Report) , Surmodics, Inc. (SRDX - Free Report) and Veeva Systems (VEEV - Free Report) .
Veeva Systems’ long-term earnings growth rate is estimated at 19.5%. The stock flaunts a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Integer Holdings, with a Zacks Rank #2, has an earnings growth rate of 31.2% for the first quarter of 2019.
Surmodics’ long-term earnings growth rate is projected at 10%. The stock carries a Zacks Rank of 2, currently.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>