On Mar 20, Zacks Investment Research upgraded
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Stryker has been witnessing rising earnings estimates on the back
of strong fourth-quarter 2013 results. Moreover, this MI-based
medical technology company is well positioned in the worldwide
Reconstructive market for the long-run via the integration of its
MAKO technology. The long-term expected earnings growth rate for
this stock is 8.28%.
Stryker reported its fourth-quarter results on Jan 22, 2014.
Adjusted earnings per share came in at $1.23, edging past the
Zacks Consensus Estimate of $1.22 by 0.82% and exceeding the
company's prior-year earnings by 7.9%.
Earnings were primarily aided by healthy top-line growth of 5.6%
in the reported quarter, which was largely driven by a 10.1%
increase in revenues from the Trauma and Extremities business.
Also, a dividend increment of 15% as declared by the board of
directors of Stryker last month reflects the company's strong
financial position and earnings strength.
Based on its progress, the company expects its adjusted earnings
per share in 2014 in the range of $4.75-$4.90. Management also
expects organic sales growth for the full year in the range of
4.5% to 6%.
The Zacks Consensus Estimate for earnings for 2014 increased 5.5%
to $4.83 per share as all of the 20 estimates were revised higher
over the last 60 days, with no downward revisions. The current
Zacks Consensus Estimate lies within the guidance range provided
by Stryker. For 2015, 12 estimates were revised higher over the
same time frame, lifting the Zacks Consensus Estimate by 5.2% to
$5.27 per share.
Other Stocks to Consider
In the Medical Products space,
) are performing well. While Enzymotec holds the same Zacks Rank
as Stryker, Covidien and SurModics hold a Zacks Rank #2 (Buy).
COVIDIEN PLC (COV): Free Stock Analysis
ENZYMOTEC LTD (ENZY): Free Stock Analysis
SURMODICS (SRDX): Free Stock Analysis Report
STRYKER CORP (SYK): Free Stock Analysis
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