The last five years have been good ones for medical technology investors, with the iShares U.S. Medical Devices ETF (IHI) up almost 180%, well ahead of the S&P 500 and nearly matching the NASDAQ. Smith & Nephew (SNN) has not participated in those good times, though, as the shares have been a notable laggard next to the broader med-tech space as well as more direct comparables like Stryker (SYK) and Integra (IART), both of which have also lagged the IHI over the last five years.
I believe a lot of this underperformance has been self-inflicted, including ongoing reinvestment in slower-growing markets and underinvestment in more attractive market opportunities like robotics and extremities. Now, though, Smith & Nephew has patched some of these holes and maybe better-leveraged to growth opportunities across its diverse end-markets than the Street is pricing into the shares today.
Read more here:
Smith & Nephew Leveraged To Post-Pandemic Normalization And Self-Help
No comments:
Post a Comment