Stryker stock (NYSE: SYK), a medical device company, has seen a 15% decline this year, in line with the broader S&P500 index, down 17%. Even if we look at the longer term, SYK stock, which has returned 46% from levels seen in late 2017, is in line with the S&P 500, up 48%. However, we believe that Stryker
This 46% rise in Stryker stock since late 2017 can be attributed to 1. Stryker revenue It rose 42% to $17.6 billion over the past 12 months, compared to $12.4 billion in 2017, 2. 3% increase in the company’s profit/loss ratio to 4.9x excess revenue currently, compared to 4.7x in 2017, partially offset by 3. 2% increase in total shares outstanding to 379 million shares. The increase in revenue and shares outstanding means that Stryker’s earnings per share are up 40% to $46.49 over the past 12 months, up from $33.31 in 2017. Why was Stryker Stock moved More details.
Stryker’s sales growth over recent years has been driven by the launch of new products, such as – Surgi-Count + – Surgical Sponge Counting System. Last month, it launched the Insignia Hip Stem ambulance bed and Power-PRO 2. The new launches are likely to help its revenue growth in the future.
The company’s revenue growth was also boosted by the acquisition of Wright Medical, a medical device company, in late 2020. Earlier this year, Stryker agreed to acquire Vocera Communications — a company focused on communications systems for the healthcare sector.
Stryker has seen its operating margins expand to 13.2% for the past twelve months, compared to just 1.9% in 2017. However, the measure is down from the 18.2% figure seen in 2019, before the pandemic. Operating margin contracted at an average rate of 190 basis points in the first half of 2022, due in part to higher inflation that increased raw material costs and supply chain disruptions, which also affected margin growth. our Stryker operating income comparison The dashboard has more details.
Looking at SYK stock, we believe there is more room for growth from the current market price of $226. Company management directed revenue growth of 6% to 8% for the entire year of 2022. And in the middle of the guideline, that translates to $18.3 billion in revenue. Assume the current share count of 378.3 million (reported in the second quarter of 2022) to arrive at projected earnings per share of $48.40 for the full year 2022. Now, at current levels, SYK stock is trading at 4.7 times forward expected earnings, compared to To an average of the last three years of 5.5 times, which means there is more room for growth.
While SYK stock appears to have more room to grow, it's useful to know how Stryker Peers Fare on important metrics. You'll find other valuable comparisons of companies across industries at Peer comparisons.
Moreover, the Covid-19 crisis has caused many price pauses which can provide attractive trading opportunities. For example, you will be surprised how counterintuitive the stock valuation is Victor vs Stryker.
What if you were looking for a more balanced portfolio instead? our high quality wallet And the Multi-strategy portfolio It has consistently beaten the market since the end of 2016.
invest with trevis wallets hit the market
show all trevis Price Estimates