Thursday, October 21, 2010

St. Jude Is Fine Today, But What About Tomorrow?

St. Jude Medical (NYSE:STJ) is one of the relatively few large-cap medical technology companies managing to deliver ongoing growth through this tough part of the cycle. Unfortunately for shareholders, there is a great deal of uncertainty about whether St. Jude is going to continue to deliver enough growth to make the stock appealing for the long-haul. 

The Quarter That Was
St. Jude reported total revenue growth of 7% for the third quarter, with the company's large CRM (cardiac rhythm management) business growing at 7%, and the smaller atrial fibrillation and neuromodulation businesses growing 8% and 11% respectively. Relative to "same-store" results from Boston Scientific (NYSE:BSX) and off-calendar comparisons to Medtronic (NYSE:MDT), St. Jude is almost certainly capturing shares in the large and lucrative (but slow-growing) CRM market. That is a good thing, as that is 60% of the company's business.


Please see the link below for the full piece:
http://stocks.investopedia.com/stock-analysis/2010/St.-Jude-Is-Fine-Today-But-What-About-Tomorrow--STJ-BSX-MDT-AGAM-ABMD-THOR-ZOLL1021.aspx

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