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JimVanMeerten (63.23)

Stryker operates on profits

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January 20, 2010 – Comments (0) | RELATED TICKERS: SYK

Health care is on center stage these days. It doesn't matter whether you believe in universal health care, public or private, individually insured or tax payer funded; there will always be people that need surgery. Stryker (SYK) does everything imaginable in the surgical arena.

Stryker Corporation develops, manufactures, and markets specialty surgical and medical products, including orthopaedic implants, bone cement, trauma systems used in bone repair, powered surgical instruments, endoscopic systems, craniomaxillofacial fixation devices, specialty surgical equipment used in neurosurgery and patient care and handling equipment for the global market and provide outpatient physical and occupational rehabilitation services. Stryker products will be in almost every operating room you will find.

The stock has a large following and there are 11 buy recommendations out there from major brokerage firms. Analysts predict a 7.8% increase in sales next year and an 11.6% increase in earnings per share. A compounded 5 year EPS growth rate of 11.11% is expected.


On a technical basis Barchart has a buy signal on 12 of its 13 technical indicators for an overall buy rating of 96%. The stock has had month over month price appreciation in the last 5 months and just keeps on truckin'.

Other sites like Wall Street Survivor readers give the stock a 5/5 Survivor Sentiment rating. Motley Fool CAPS members feel the stock will out perform the market by a vote of 1344 to 37 with the All Stars in agreement 500 to 9.

The smart boys, the short sellers have closed out positions since last year from a high of 12 million shares last February down to around 6.5 million at the end of the year.

Recommendation: SYK looks like a buy to me around 56 with a protective stop loss no lower than 52.

Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email JimVanMeerten@gmail.com

Disclosure: No positions in SYK at the time of publication

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