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Stryker's Global Foothold Strong Amid Product Recall Issue
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On Jan 2, we issued an updated research report on Stryker Corporation (SYK - Free Report) . The company’s solid international foothold is expected to boost growth by expanding existing product offerings in all business segments. However, the company announced the voluntary product recall of the Oral Care line-up in 2017.
Stryker is focusing on international growth. A significant turnaround in the company’s European business backed by effective restructuring measures indicates a potential upside. In particular, the company’s Medsurg product line has witnessed strong demand in the European and Australian markets. Further, favorable response for the Medsurg product line in China has enhanced the company’s international prospects.
Stryker’s international organic sales growth in the third quarter of 2017 was 5.2% on a year-over-year basis. Strong international performance came on the back of solid performances in Europe, Asia and Latin America. In the quarter, internationally, MedSurg delivered organic sales growth of 7.1%, which indicates strong growth in Medical businesses, primarily in Europe.
Neurotechnology and Spine also witnessed robust organic growth. The performance was bolstered by high demand for Neurotech products in Europe and Asia. Countries like UK, Germany, Italy have been witnessing solid performances from Stryker since long. In fact, the company’s Physio unit launched Automated External Defibrillators (AED) in Europe, recently.
On the flip side, Stryker announced the voluntary product recall of the Oral Care lineup, which was offered by the company’s Sage-Products unit. Added to the voluntary recall, Stryker has placed a temporary hold on certain cloth-based products.
Stryker continues to witness lower demand for health care products. The company has been facing challenging global economic conditions, particularly in the United States and Western Europe. Additionally, lower reimbursements for medical products and services may impose a downward pressure on the prices for the company’s products, longer sales cycles and slower adoption of new technologies, which will dent the top line.
Stryker now expects full year organic sales growth at the lower end of the previous range of 6.5%-7% and adjusted net earnings in the band of $6.45-$6.50.
Stryker's price movement over the past year has been favorable. The company yielded a return of almost 29.7%, better than the industry's 24% rally. The current level is also higher than the S&P 500 index’s return of 19% over the same time frame. The stock has a Zacks Rank #3 (Hold).
Key Picks
A few better-ranked stocks in the broader medical sector are Integer Holdings Corporation (ITGR - Free Report) , Bio-Rad Laboratories, Inc. (BIO - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) .
Integer Holdings has a long-term expected earnings growth rate of 15%. The stock carries a Zacks Rank #2 (Buy).
Intuitive Surgical has a long-term expected earnings growth rate of 9.2%. The stock carries a Zacks Rank #2.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Image: Bigstock
Stryker's Global Foothold Strong Amid Product Recall Issue
On Jan 2, we issued an updated research report on Stryker Corporation (SYK - Free Report) . The company’s solid international foothold is expected to boost growth by expanding existing product offerings in all business segments. However, the company announced the voluntary product recall of the Oral Care line-up in 2017.
Stryker is focusing on international growth. A significant turnaround in the company’s European business backed by effective restructuring measures indicates a potential upside. In particular, the company’s Medsurg product line has witnessed strong demand in the European and Australian markets. Further, favorable response for the Medsurg product line in China has enhanced the company’s international prospects.
Stryker’s international organic sales growth in the third quarter of 2017 was 5.2% on a year-over-year basis. Strong international performance came on the back of solid performances in Europe, Asia and Latin America. In the quarter, internationally, MedSurg delivered organic sales growth of 7.1%, which indicates strong growth in Medical businesses, primarily in Europe.
Neurotechnology and Spine also witnessed robust organic growth. The performance was bolstered by high demand for Neurotech products in Europe and Asia. Countries like UK, Germany, Italy have been witnessing solid performances from Stryker since long. In fact, the company’s Physio unit launched Automated External Defibrillators (AED) in Europe, recently.
On the flip side, Stryker announced the voluntary product recall of the Oral Care lineup, which was offered by the company’s Sage-Products unit. Added to the voluntary recall, Stryker has placed a temporary hold on certain cloth-based products.
Stryker continues to witness lower demand for health care products. The company has been facing challenging global economic conditions, particularly in the United States and Western Europe. Additionally, lower reimbursements for medical products and services may impose a downward pressure on the prices for the company’s products, longer sales cycles and slower adoption of new technologies, which will dent the top line.
Stryker now expects full year organic sales growth at the lower end of the previous range of 6.5%-7% and adjusted net earnings in the band of $6.45-$6.50.
Stryker's price movement over the past year has been favorable. The company yielded a return of almost 29.7%, better than the industry's 24% rally. The current level is also higher than the S&P 500 index’s return of 19% over the same time frame. The stock has a Zacks Rank #3 (Hold).
Key Picks
A few better-ranked stocks in the broader medical sector are Integer Holdings Corporation (ITGR - Free Report) , Bio-Rad Laboratories, Inc. (BIO - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) .
Bio-Rad Laboratories flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The company has a long-term expected earnings growth rate of 25%.
Integer Holdings has a long-term expected earnings growth rate of 15%. The stock carries a Zacks Rank #2 (Buy).
Intuitive Surgical has a long-term expected earnings growth rate of 9.2%. The stock carries a Zacks Rank #2.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>