Is Stryker Stock Underperforming the Nasdaq?
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Portage, Michigan-based Stryker Corporation (SYK) offers innovative products and services in MedSurg, Neurotechnology, Orthopaedics and Spine that help improve patient and healthcare outcomes. With a market cap of $146.1 billion, Stryker operates as one of the world’s leading medical technology companies.
Companies worth $10 billion or more are generally described as "large-cap stocks." Stryker fits this bill perfectly. Given the company impacts over 150 million patients annually, its valuation above this mark is not surprising. The company’s operations span nearly 75 countries across the Americas, Indo-Pacific, and EMEA, employing almost 53,000 people.
SYK touched its all-time high of $406.19 on Jan. 28 and is currently trading 6.2% below that peak. In the past three months, the stock has dipped 1.4%, lagging behind the Nasdaq Composite’s ($NASX) 2.1% uptick during the same time frame.
On a YTD basis, Stryker’s stock price has surged 5.8%, outpacing Nasdaq’s marginal decline. However, over the past 52 weeks, SYK has gained 11.7%, lagging behind NASX’s 15% returns over the past year.
To confirm the recent upturn, SYK stock has traded above its 200-day and 50-day moving averages since late April.
Stryker’s stock prices rose 1.1% in the trading session after the release of its impressive Q1 results on May 1. Driven by strengthening procedural volumes and strong demand for its capital products, the company’s organic revenues surged 10.1%. Meanwhile, its reported net sales increased by an impressive 11.9% year-over-year to $5.9 billion, beating the Street’s expectations by 2.9%. On an even more positive note, through its excellent operational efficiency, Stryker’s adjusted operating margin expanded by 100 bps compared to the year-ago quarter to 22.9%. This led to a 17.3% growth in adjusted operating income to $1.3 billion. Furthermore, its adjusted EPS grew by 13.6% year-over-year to $2.84, surpassing the consensus estimates by 4%.
However, the medtech giant has notably lagged behind its peer, Boston Scientific Corporation’s (BSX) 16.6% gains on a YTD basis and 37.9% surge over the past year.
Nevertheless, analysts remain confident in the company’s long-term prospects. Among the 28 analysts covering the SYK stock, the consensus rating is a “Strong Buy.” Its mean price target of $431.19 suggests a 13.2% upside potential from current price levels.
On the date of publication, Aditya Sarawgi 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.
