Saturday, July 28, 2018

Stryker's Exceptional Growth Supports A Gravity-Defying Valuation

It’s difficult to find much comfort with Stryker’s (SYK) valuation, but the company continues to deliver exceptional financial results that at least help kick the valuation can a little further down the road. MAKO continues to drive share growth from Stryker in knee implants, while new power tools are driving strong surgical equipment growth, and the company continues to benefit from expanding penetration of interventional procedures for stroke patients.

I won’t try to justify the price Stryker is trading at today. Medical devices in general are trading well above long-term norms, but Stryker continues to deliver exceptional financial performance across its business units. I wouldn’t want to be caught without a chair when the music stops, but I know better than to assume that Stryker’s high valuation alone would prevent the shares from heading higher.

Read more here:
Stryker's Exceptional Growth Supports A Gravity-Defying Valuation

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