It's hard to find much to complain about with Stryker (NYSE:SYK). The shares aren't cheap, but then they weren't back in January
and they've managed to tack on another 10%, making them one of the
better performers in the group this year. I suppose I could complain
that the company's solid revenue growth isn't unlocking a lot of margin
leverage, but then this is a pretty efficiently run company from the
off.
Looking ahead, I'm still not wild about the valuation, but I
do acknowledge that Stryker has dry powder that it can deploy toward
accretive M&A. I would be in no rush to sell Stryker if I owned it,
but I generally like to see some discount to DCF-based or EV/rev-based
fair value to make a new purchase, and I just don't see that here in
Stryker's valuation.
Continue here:
Stryker Seems Next In Line For A Big Deal
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