I bought in a few days ago for several reasons. From the one year chart, SYK has formed a nice base and has not participated in the runup like the rest of the market since March.
A look at SYK's balance sheet shows a very healthy amount of cash and very little debt. In todays's debt-laden, deleveraging world, that is key. It's ROE is also over 18%.
SYK is also projected to grow 10-12% per year over the next several years. Now look around at America and ask yourself what kind of sectors and companies are going to provide stable growth like that. The banks?
The political environment also reinforces this. The health care plans in Congress have made some investors shy away from this sector. But as recent debate has shown, the U.S. Congress will not threaten Medicare, no matter how bad a shape it is in. The elderly vote and do you think Congresspersons are going to jeopardize their offices to anger the age group demanding Stryker's products? We haven't got the stomach for real reform in this country.
While a good company does not necessarily make a good stock, I like Stryker's prospects. Good Luck.
p.s. On the same note, after a possible fall decline, keep an eye on the energy sector for late spring. Again, because the U.S. and its political representatives do not have the will to make much needed reforms, the alternative energy proposals which are part of the stimulus plan will not come even close to offsetting the growth in world oil demand when economies show some growth. The speculators will push oil prices above their 2008 levels.