Martin Cobb, ASIP Smith & Nephew PLC SNN-N PAST TOP PICK Jun 26, 2025

He owns Stryker instead. But SNN enjoys a demographic tailwind as Boomers age. Demand will continue to grow.

Global leader in hip and knee replacement, also wound management. Great secular growth story. Earnings weak last couple of years. Demographic and pickleball play. Lowest valuation in 50 years, 14x PE, 12x next year's PE. Revenues re-accelerating. Earnings and margins growing. Yield is 3.7%.

Cheaper than SYK, and probably more narrowly focused.

It is a UK medical tool company. It is a reasonable company but you have to buy it when it works and when it's on sale. There are better opportunities.

They make equipment for hip and knee replacements, which is a great place to be. An activist has taken a position here, pushing to break up the company for its underlying value.

Demand continues to grow quite nicely. Competes with SYK (a slightly better business, though at 29x PE), and grows at similar rates. Trades at 13x PE for 10% EPS growth. Likes the risk/reward. Yield is 2.2%.

Hip and knee medical equipment is what they make. Trades at a big discount to Stryker. Benefits from an aging population as well as sports injuries. Has long-term growth. The US is half their market.

Medical equipment. Not performed great in the last while due to competition. Plus, they took their eyes off the ball. Long-term returns not great, 5-year compound annual performance is -4%. He owns SYK instead -- 5-year performance is 15%.