Stryker Needs A Growth Resurfacing

Stryker (NYSE:SYK) used to be on the glory stocks of the medical technology sector. Every year, they churned out 20% earnings growth no matter what, and a lot of money was lost betting that the trend would end. Nowadays, though, that seems like a distant memory and the prime question about Stryker is whether they can recapture growth and leadership in their markets. 

The Quarter that Was
June was not a very encouraging quarter for Stryker fans. Revenue was up 7% overall and that was just shy of analysts' average guess. The trouble, though, was in the details. The MedSurg business showed 15.9% increase in sales as hospitals played catch up on the purchase of equipment like hospital beds; purchases that were postponed during the 2008-2009 troubles. The company's core orthopedics business, though, was only up a bit more than 1%, and hips, knees, and spinal care were all very weak. In fact, I believe this is the weakest result Stryker has produced here since they bought Howemedica from Pfizer (NYSE:PFE) in 1998.  

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http://stocks.investopedia.com/stock-analysis/2010/Stryker-Needs-A-Growth-Resurfacing-SYK-PFE-ZMH-SNN-WMGI0722.aspx

Full disclosure - Johnson & Johnson (NYSE: JNJ) is also a major orthopedics competitor. Per Investopedia policy, I am not allowed to mention any names I own in my own accounts. 
Full disclosure (pt 2) - I own shares of Johnson & Johnson.