Stryker Has Looked A Little Mortal Lately, And The Stock Has Suffered

To be clear from the outset, the only thing that’s “wrong” with Stryker (SYK) is that the company’s past performance, and the sell-side’s endless need to find ways to goose price targets ever higher, set a pace that few companies could maintain. Then COVID-19 came along and made life considerably more challenging for a company with exposure across the spectrum of procedure counts (weighted toward elective) and capital budgets (under strain).

With more mixed performance trends, and concerns that rivals like Zimmer Biomet (ZBH) have some momentum behind them, Stryker shares have underperformed the broader med-tech space by about 20% since my last article. I still can’t really say that Stryker is “cheap”, though the multiples and prospective returns are more reasonable than they’ve been in a while, and Stryker is a name that tends to recover well after pullbacks. I am still worried about another leg down, though, and at this price I’d rather run the risk of missing out than overpaying.

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Stryker Has Looked A Little Mortal Lately, And The Stock Has Suffered