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Here's Why You Should Invest in Stryker (SYK) Right Now

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Stryker Corporation SYK is currently one of the top stocks in the medical devices space.

In the past year, Stryker’s shares have rallied 23.2%, compared with the industry’s return of 14.1% and the S&P 500’s 15.3%.

Over the past 90 days, the Zacks Consensus Estimate for earnings per share rose 0.6% to $1.60. The company has a Zacks Rank #2 (Buy), which indicates the possibility of outperformance in the near term.

The stock has a VGM Style Score of B, which buoys optimism. Notably, stocks with a Growth Style Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, outperform most stocks.

Let’s find out whether the recent positive trend can sustain the stock’s impressive performance in the long run.

Stryker Corporation Price and Consensus

 

Stryker Corporation Price and Consensus | Stryker Corporation Quote

What Makes It an Attractive Pick?

Promising Mako Platform

Mako is Stryker’s robotic-arm Assisted surgery platform. In the last reported quarter, Mako robot installations totaled 35 globally, with 27 in the United States. Additionally, the company had its first robot sale in Japan, where the approval for Mako is expected by the end of 2018.

Moreover, Mako Total Knee procedures for 2017 were 15,778, with 20% more competitive surgeons using the Triathlon Total Knee implant for the first time. Stryker exited 2017 with 372 Mako robots installed in U.S. hospitals, representing 10% of its customer base.

Guidance Solid

Stryker expects net sales to be positively impacted by 1% in 2018, courtesy of favorable foreign exchange rates.
Adjusted earnings for 2018 are expected in the range of $7.07-$7.17. For the first quarter of 2018, the earnings guidance is $1.57-$1.62.

The company anticipates organic sales growth in the range of 6-6.5% for 2018.

Management projects capital expenditures in the range of $550-$600 million compared with approximately $600 million in 2017.

Strategic Buyouts

Stryker’s acquisition strategy has helped the company gain traction. The recent buyout of Minnesota-based Entellus Medical, Inc. is likely to help physicians to conveniently perform a wide range of ENT procedures.

Recently, Stryker acquired VEXIM, which specializes in the development and sale of vertebral compression fracture solutions.

Other Key Picks

A few other top-ranked stocks in the broader medical space are Bio-Rad Laboratories, Inc. BIO, Envision Healthcare Corporation EVHC and Integer Holdings Corporation ITGR.

Bio-Rad has an expected long-term growth rate of 20% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Envision Healthcare has an expected long-term growth rate of 13% and a Zacks Rank #1.

Integer Holdings has an expected long-term growth rate of 15% and a Zacks Rank #2.

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Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
 
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Bio-Rad Laboratories, Inc. (BIO) : Free Stock Analysis Report
 
Envision Healthcare Corporation (EVHC) : Free Stock Analysis Report
 
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