Stryker Priced Accurately For What It Is - 'The' Best Large Med-Tech

I've made no secret of my abiding respect for Stryker (SYK) and its ability to leverage M&A and disruptive internal R&D to target and deliver on above-average growth opportunities in med-tech. In the roughly seven years Kevin Lobo has been the CEO, the company has spent $14 billion on M&A but has stayed away from "scale for scale's sake" deals in favor of purchasing potentially disruptive assets like Mako, SBI, and K2M, and has managed to deliver organic growth rates (over 7% in Q1) comfortably ahead of its peer group.

Trees don't grow to the sky, but Stryker has growing room. The company is under-leveraged to Europe and emerging markets relative to its peers and Mako continues to drive share gains in knees, while trauma and neuro still offer room for growth. Valuation is still my main hang-up, as I'm not all that excited about the mid-single-digit prospective returns that the stock would seem to offer at today's prices.

Continue here:
Stryker Priced Accurately For What It Is - 'The' Best Large Med-Tech