For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Stryker (SYK) ten years ago? It may not have been easy to hold on to SYK for all that time, but if you did, how much would your investment be worth today?
Stryker's Business In-Depth
With that in mind, let's take a look at Stryker's main business drivers.
Headquartered in Kalamazoo, MI, Stryker Corporation is one of the world’s largest medical device companies operating in the global orthopedic market. The company has three business segments: Orthopaedics, MedSurg, and Neurotechnology & Spine.
Orthopaedic products primarily include implants used in hip and knee joint replacements and trauma and extremities surgeries.
MedSurg products consists of surgical equipment and surgical navigation systems (Instruments); endoscopic and communications systems (Endoscopy); patient handling and emergency medical equipment (Medical); and reprocessed and remanufactured medical devices (Sustainability) as well as other medical device products used in a variety of medical specialties.
Neurotechnology & Spine division includes both neurosurgical and neurovascular devices. These includes products used for minimally invasive endovascular techniques; traditional brain and open skull base surgical procedures; orthobiologic and biosurgery products, including synthetic bone grafts and vertebral augmentation products; and minimally invasive products for the treatment of acute ischemic and hemorrhagic stroke.
Spinal implant product offering includes cervical, thoracolumbar and interbody systems used in spinal injury, deformity and degenerative therapies.
It is important to note here that effective from Dec 31, 2021, Stryker has updated its reportable business segments to align to its new internal reporting structure.
2022 at a Glance
Stryker’s full-year revenues totaled $18.45 billion, up 7.8% from the previous year. Adjusted earnings per share of $9.034 increased 2.8% from the previous year.
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Stryker ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in September 2013 would be worth $4,084.98, or a gain of 308.50%, as of September 19, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 158.10% and the price of gold increased 35.89% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for SYK.
Stryker exited second-quarter 2023 on a strong note with better-than-expected earnings and revenues. The company witnessed strong performance across its segments in the United States. Strong International sales also buoy optimism. The momentum is expected to continue into the second half of 2023 on the back of ongoing procedural recovery and a strong order book for capital equipment. Stryker’s prospects in 2023 seem promising on the back of strong customer demand for its existing products as well as new launches. The company’s guidance for earnings and revenues appears encouraging. A solid solvency position is a plus. However, inflationary pressure and supply-chain challenges continue to plague Stryker. Stiff competition in the MedTech space remains a woe. Contraction in both gross and operating margin is a woe.
The stock is up 6.15% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 13 higher, for fiscal 2023. The consensus estimate has moved up as well.
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