Summary
- Stryker Corporation (SYK) shows strong technical buy signals, with a 6.09% gain since 8/21, and consistent price appreciation across key moving averages.
- The company operates in MedSurg, Neurotechnology, Orthopaedics, and Spine segments, offering a wide range of medical devices and technologies.
- Analysts provide mixed ratings, with price targets ranging from $260 to $477; the consensus is $378, highlighting strong M&A activity and innovation.
- Despite high volatility, Stryker's strong fundamentals, including expected revenue and earnings growth, make it a compelling investment with a market cap of $139 billion.
The Chart of the Day belongs to the medical device company Stryker (SYK) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 8/21 the stock gained 6.09%.
Stryker Corporation operates as a medical technology company. The company operates through two segments, MedSurg and Neurotechnology, and Orthopaedics and Spine. The Orthopaedics and Spine segment provides implants for use in total joint replacements, such as hip, knee and shoulder, and trauma and extremities surgeries. This segment also offers spinal implant products comprising cervical and thoracolumbar systems that include fixation, minimally invasive and interbody systems used in spinal injury, complex spine and degenerative therapies. The MedSurg and Neurotechnology segment offers surgical equipment, and surgical navigation systems, endoscopic and communications systems, patient handling, emergency medical equipment and intensive care disposable products, reprocessed and remanufactured medical devices, clinical communication and workflow solutions, and other medical device products that are used in various medical specialties, as well as patient and caregiver safety technologies. This segment also provides neurosurgical, neurovascular and craniomaxillofacial implant products, which include products used for minimally invasive endovascular procedures; products for brain and open skull based surgical procedures; orthobiologic and biosurgery products, such as synthetic bone grafts and vertebral augmentation products; minimally invasive products for the treatment of acute ischemic and hemorrhagic stroke; and craniomaxillofacial implant products, including cranial, maxillofacial, and chest wall devices, as well as dural substitutes and sealants. The company sells its products to doctors, hospitals, and other healthcare facilities through company-owned subsidiaries and branches, as well as third-party dealers and distributors in approximately 75 countries. Stryker Corporation was founded in 1941 and is headquartered in Portage, Michigan.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
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Barchart Technical Indicators:
- 100% technical buy signals
- 26.85+ Weighted Alpha
- .98 - 60 month Beta
- 22.23% gain in the last year
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 19 new highs and up 11.75% in the last month
- Relative Strength Index 72.49%
- Technical support level at $360.98
- Recently traded at $366.75 with 50 day moving average of $340.38
Fundamental Factors:
- Market Cap $139 billion
- P/E 32.30
- Dividend yield .86%
- Revenue expected to grow 9.20% this year and another 8.00% next year
- Earnings are estimated to increase 13.20% this year, an additional 12.40% next year and continue to compound at an annual rate of 11.29% for the next 5 years
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analyst gave 14 strong buy, 7 buy, 10 hold and 1 under perform opinions on the stock
- Analysts' price targets are between $260 and $410 with a consensus of $378
- Value Line give the stock its average rating of 3 and has price targets between $310 and $477 with a mid-point of $394 and comments: "The company has been active on the M&A front. So far this year, Stryker acquired firms to provide modular wall systems to hospitals, to add to its hip implant portfolio, and to strengthen its offerings in the soft tissue fixation market. In addition, the company intends to accelerate its M&A activity."
- CFRAs MarketScope rates the stock a 4 Star Buy with a price target of $377 and comments: "We see upside potential for shares of SYK. It is a formidable competitor because of the strength of its robotic orthopedic offering (the MAKO system) and its high exposure to outpatient procedures."
- MorningStar rates the stock a below average 1 star rating with Fair Value at $260 and says it is 40% over valued by comments:"It enjoys a long record of innovation in its key markets, and we anticipate the pattern will continue, allowing the wide-moat company to earn attractive economic profits."
- 45,400 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
