It's hard to fault the long-term performance of Stryker (SYK), as the shares have a 20-year compounded rate of return (with reinvested dividends) of about 12.5% - more than doubling the return of the S&P 500 over that time. Even with these shares having modestly underperformed the broader med-tech space over the last 10 years (a byproduct of robust valuation), that "underperformance" is less than 2% and still works out to over 15% a year in annualized returns.
Stryker goes into 2021 well-positioned to benefit from procedure normalizations, as well as a return to more normal capex spending patterns on the part of hospitals. There are challenges across the business, though, and I wouldn't call the shares priced at "can't miss levels", as I see a prospective long-term total annualized return more in the mid-single-digits from these levels.
Read the full article here:
Stryker Still A Med-Tech King, But There Are Challengers To The Throne
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