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Stryker Corporation (SYK) is a leading global medical technology company with a market cap of around $137 billion. The Michigan-based company specializes in innovative solutions across its two business segments—MedSurg & Neurotechnology and Orthopaedics & Spine—offering a wide range of surgical, orthopedic, and neurovascular products.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Stryker fits this criterion perfectly, exceeding the mark. Stryker stands out in the market for its extensive portfolio of advanced medical devices and systems, backed by a steadfast commitment to quality and innovation that drives improved patient care and clinical outcomes.
The medical device maker has experienced a 1.5% decline from its 52-week high of $364.36, reached on Sep. 4. Over the past three months, Stryker's shares have gained 5.4%, underperforming compared to the 7.9% returns of The Health Care Select Sector SPDR Fund (XLV) during the same period.
Despite recent underperformance, in the longer term, SYK has shown strong performance with a 20.3% surge on a YTD basis, outpacing XLV’s 14.9% gains. Shares of Stryker have risen 26.7% over the past year, compared to XLV’s 17.3% gain during the same period.
To confirm the bullish price trend, SYK has been trading above its 200-day moving average since November last year and remained above its 50-day moving average during the period despite some recent fluctuations.
Stryker's outperformance over the past year is attributed to innovation and expansion in key segments, efficient cost management, and operational improvements. Recently, Stryker acquired MOLLI Surgical, boosting its breast cancer care solutions with advanced wire-free localization technology.
However, despite beating Q2 adjusted EPS and revenue expectations due to robust demand for medical devices and implants on Jul. 30, the stock slipped marginally following the earnings release. This decline was driven by a lower-than-expected GAAP EPS of $2.14 and a revision in 2024 guidance projecting a larger negative impact from foreign exchange rates on adjusted EPS.
In comparison, its rival Becton, Dickinson, and Company (BDX) has dropped 15.1% over the past 52 weeks and is down 3.1% on a YTD basis, which lags behind Stryker's stock performance.
Despite its impressive price performance over the past year, analysts are cautiously optimistic about Stryker, with a "Moderate Buy" consensus rating from 27 analysts. As of writing, the stock is trading below the mean price target of $379.38.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
