Stryker Corporation (SYK) is poised for growth with its robust Mako robotic arm-assisted surgery platform and diversified product portfolio. Despite concerns about pricing pressure, shares of this Zacks Rank #2 (Buy) company have outperformed the industry, rising 16.3% year to date compared to a 2.7% decline in the industry.
Stryker’s Growth Drivers
Stryker has seen strong demand for its Mako platform, which has unique features and has led to a healthy order book. Continued adoption, new launches, and software upgrades are expected to drive robust growth in Mako revenues in the second half of 2023. Stryker also benefits from its diversified product portfolio, protecting it against sales shortfalls during economic turmoil.
Stryker has a strong presence in robotics, artificial intelligence, and medical mechatronics, giving it an edge in the MedTech space. The company’s commitment to innovation and customer support positions it for growth as the effects of the pandemic subside. Recent product launches, such as the Q Guidance System for spine applications, have shown promising uptake. Cost-cutting initiatives are also in place to improve margins and mitigate inflationary pressure.
Challenges for Stryker
Exchange rate fluctuations and inflationary pressure are ongoing challenges for Stryker. Unfavorable currency rates have negatively impacted sales, and this trend is expected to continue. However, Stryker’s overall positive outlook and growth prospects outweigh these challenges.
Estimate Trend
The Zacks Consensus Estimate for 2023 earnings per share is $10.37, indicating a year-over-year growth of 11%. Revenues are also expected to improve by 9.9% year over year, reaching $20.27 billion.
Other Stocks to Consider in the Medical Space
For a well-rounded investment portfolio in the medical sector, consider other top-ranked stocks like Align Technology (ALGN), HealthEquity, Inc. (HQY), and McKesson Corporation (MCK). These companies have strong growth potential and have outperformed the industry.
Note: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
