The Motley Fool: Could Smith & Nephew Plc Be a Good Value?

Procedures volumes have started picking up and pricing pushbacks from payers has eased, leading many stocks in the orthopedics space to log good runs. Smith & Nephew plc (NYSE: SNN  ) has done better than peers/rivals like Stryker (NYSE: SYK  ) and Zimmer over the last twelve months, but oddly enough it may yet offer more value. The company's knee business appears to be regaining some share and the acquisition of Arthrocare (NASDAQ: ARTC  ) should be a highly synergistic opportunity to grow in a space that offers better prospects than major joint reconstruction.

Continue here:
Could Smith & Nephew Plc Be a Good Value?

Investopedia: Mergers In Orthopedics Could Heat Up Stocks

Companies in the orthopedics space have had a rough go of it in the last few years. The federal government launched multiple investigations regarding the sales practices of these companies and prosecutors have managed to nail several skins to the wall. At the same time, hospitals and insurers have fought back on pricing and the growth rate for the sector has suffered. Making matters worse, the recession set in and many would-be patients decided to wait to undergo procedures.

Buyouts have added some energy to this space of late. Medtronic (NYSE:MDT) absorbed Osteotech late in 2010; Johnson & Johnson (NYSE:JNJ) announced its intention to acquire Swiss spine and trauma specialist Synthes in April of this year; and just the other day Stryker (NYSE:SYK) announced that it would acquire Orthovita (Nasdaq:VITA) in an all-cash deal. Given the benefits of scale, though, there may yet be more deals to come in this sector. (For background reading, check out Investing In Medical Equipment Companies.)

To read the full piece, click below:
http://stocks.investopedia.com/stock-analysis/2011/Mergers-In-Orthopedics-Could-Heat-Up-Stocks-JNJ-MDT-SYK-SNN-ZMH-NUVA-WMGI0518.aspx