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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 investor confidence on continued positive results. Over the past year, the company’s stock has outperformed its industry. The stock has rallied 22.1% compared with the industry’s 8.9% gain. Also, the company has outperformed the S&P 500’s 6.2% rally.
Notably, a solid 2018 fourth-quarter show by the company and solid international presence currently boost the stock.
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?
Solid Q4 Show
In the recently-reported fourth quarter of 2018, adjusted earnings per share (EPS) of $2.18 beat the Zacks Consensus Estimate by 1.4%. Earnings improved 11.2% year over year and were at the high end of the company’s guidance.
The Michigan-based medical device company reported revenues of $3.80 billion, which were well ahead of the Zacks Consensus Estimate of $3.73 billion. Revenues increased 9.4% on a year-over-year basis and 11.3% at constant currency (cc). For the first quarter of 2019, the company expects adjusted EPS within $1.80 and $1.85. The midpoint of the latest guidance of $1.83 million is in line with the Zacks Consensus Estimate.
Solid Global Presence
Stryker has had consistent focus on international growth.
In the fourth quarter of 2018, the company’s international sales rose 7.3%, year over year to $1.03 billion. Organically, international sales grew double digits powered by performances in emerging markets and Europe. In fact, management stated that full-year growth in South Pacific, Japan and Canada was higher than U.S. growth.
Stryker’s core Orthopaedic segment also put up a solid show in Europe, emerging markets and Canada. Additionally, MedSurg performed strongly in Europe, Australia and emerging markets. Neurotechnology & Spine also saw strong demand in Europe, China and Japan in recent times.
The Zacks Consensus Estimate for first-quarter EPS reflects a year-over-year increase of 8.9%. The same for revenues stands at $3.51 billion, indicating an 8.4% rise year over year.
For the full year, the Zacks Consensus Estimate is pegged at earnings of $8.11, reflecting a rise of 10.9%. The same for revenues stands at $14.80 billion, indicating an 8.8% rise year over year.
Want More From the Industry?
Other top-ranked stocks from the Medical Product space are Abbott Laboratories (ABT - Free Report) , Surmodics, Inc. (SRDX - Free Report) and BioLife Solutions, Inc. (BLFS - Free Report) .
Abbott’s long-term earnings growth rate is projected at 11.7%. The stock carries a Zacks Rank #2.
BioLife has an expected earnings growth rate of 180% for the current quarter. The stock has a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Here's Why You Should Invest in Stryker (SYK) Stock Right Now
Stryker Corporation (SYK - Free Report) has been gaining investor confidence on continued positive results. Over the past year, the company’s stock has outperformed its industry. The stock has rallied 22.1% compared with the industry’s 8.9% gain. Also, the company has outperformed the S&P 500’s 6.2% rally.
Notably, a solid 2018 fourth-quarter show by the company and solid international presence currently boost the stock.
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?
Solid Q4 Show
In the recently-reported fourth quarter of 2018, adjusted earnings per share (EPS) of $2.18 beat the Zacks Consensus Estimate by 1.4%. Earnings improved 11.2% year over year and were at the high end of the company’s guidance.
The Michigan-based medical device company reported revenues of $3.80 billion, which were well ahead of the Zacks Consensus Estimate of $3.73 billion. Revenues increased 9.4% on a year-over-year basis and 11.3% at constant currency (cc).
For the first quarter of 2019, the company expects adjusted EPS within $1.80 and $1.85. The midpoint of the latest guidance of $1.83 million is in line with the Zacks Consensus Estimate.
Solid Global Presence
Stryker has had consistent focus on international growth.
In the fourth quarter of 2018, the company’s international sales rose 7.3%, year over year to $1.03 billion. Organically, international sales grew double digits powered by performances in emerging markets and Europe. In fact, management stated that full-year growth in South Pacific, Japan and Canada was higher than U.S. growth.
Stryker’s core Orthopaedic segment also put up a solid show in Europe, emerging markets and Canada. Additionally, MedSurg performed strongly in Europe, Australia and emerging markets. Neurotechnology & Spine also saw strong demand in Europe, China and Japan in recent times.
Stryker Corporation Price and Consensus
Stryker Corporation Price and Consensus | Stryker Corporation Quote
Which Way Are Estimates Treading?
The Zacks Consensus Estimate for first-quarter EPS reflects a year-over-year increase of 8.9%. The same for revenues stands at $3.51 billion, indicating an 8.4% rise year over year.
For the full year, the Zacks Consensus Estimate is pegged at earnings of $8.11, reflecting a rise of 10.9%. The same for revenues stands at $14.80 billion, indicating an 8.8% rise year over year.
Want More From the Industry?
Other top-ranked stocks from the Medical Product space are Abbott Laboratories (ABT - Free Report) , Surmodics, Inc. (SRDX - Free Report) and BioLife Solutions, Inc. (BLFS - Free Report) .
Abbott’s long-term earnings growth rate is projected at 11.7%. The stock carries a Zacks Rank #2.
Surmodics’ long-term earnings growth rate is projected at 10%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BioLife has an expected earnings growth rate of 180% for the current quarter. The stock has a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>