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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 $148.2 billion, Stryker operates as one of the leading medical technology companies across the globe.
The medtech giant has substantially outperformed the broader market over the past year. SYK stock prices have surged 29.8% on a YTD basis and 34.8% over the past year, outpacing the S&P 500 Index’s ($SPX) 24.1% gains in 2024 and 31.1% returns over the past 52 weeks.
Narrowing the focus, Stryker has also outpaced the iShares U.S. Medical Devices ETF’s (IHI) gains of 11.1% in 2024 and 23.2% over the past 52-week period.
Despite the currency headwinds Stryker has continued to deliver impressive earnings and revenue growth. The company reported strong growth across its businesses and geographies and is on track to achieve its adjusted operating margin expansion goals. SYK stock price rose 1.2% in the trading session after the release of its impressive Q3 earnings on Oct. 29. The company’s product innovation and acquisitions have helped it sustain growth at the high end of Medtech. It reported a robust 11.9% year-over-year growth in net sales, reaching $5.5 billion with its organic net sales surging 11.5%, which exceeded Wall Street’s topline expectation.
Moreover, the company has continued to improve its efficiency, leading to a 130 basis-point adjusted operating margin expansion to 24.7% when Stryker has continued to increase its investment in research and development. This translated into a staggering 16.7% year-over-year growth in adjusted EPS to $2.87, exceeding analysts’ consensus estimates by a notable 3.2%.
For the current fiscal year, ending in December, analysts expect Stryker to report a 13.8% year-over-year growth in adjusted EPS to $12.06. Moreover, the company has a solid earnings surprise history. It has surpassed analysts' bottom-line estimates in each of the past four quarters.
SYK stock has a consensus “Moderate Buy” rating overall. Among the 28 analysts covering the stock, 18 recommend “Strong Buy,” two advise “Moderate Buy,” and eight suggest a “Hold” rating.
This configuration is slightly more bullish compared to three months ago, when 17 analysts recommended a “Strong Buy” rating.
On Oct. 31, Citigroup Inc. (C) analyst Joanne Wuensch maintained a “Buy” rating while raising the price target to $411, suggesting a potential upside of 5.7% from the current price level.
Although SYK’s mean price target of $401.58 suggests a modest upside of 3.3%, the Street-high target of $450 represents a solid 15.8% premium to current price levels.
