Stryker Corp. (SYK)

Main business is orthopedics, which is profitable for US hospitals. As artificial joints improve, more people opt for surgery rather than rehab. All of med tech in general has been weak (though he's not sure why). 

Very well run. Consistently gaining market share from JNJ and ZBH. Cybersecurity incident in Q1, which impacted production. High quality. Revenue should grow high single digits for foreseeable future. Yield is 1.24%.

Medtech companies have been weak. After the post-Covid boom, customer volumes have normalized. It doesn't hurt to own this long term, but he doesn't feel investing here is timely.

They provide artificial hips and joints, a growing business as the population ages. They have a good track record of buying and absorbing companies. It's a sticky business because surgeons stay with the same supplier.

He hasn't seen valuations like this since 2020 briefly and 1993. Their big growth driver is orthopedics with robot-assisted surgeries, with growth expected to double over 5 years; robots account for roughly 45% of their orthopedics business.

The sweet spot of knee and hip replacements is only going to get better. Great name, has done well. Plays the aging theme very well. He's looking at it. If you own it, hold on.

5-year performance is 15%, creates returns on ROIC, well run, quality.

Down along with the market. About 73% of revenues from US; rest is from other parts of the world, so lots of growth internationally. Very strong demographic play. Great company.

Owned in the past, but now he owns BSX. Likes the sector, not getting hit as hard today as many other things. Aging population will propel demand for medical devices.

It produces medical devices which is a good business to be in. The aging population needs their products and there is a backlog from Covid. Their products change the quality of life and reduce hospital stays to a couple of days. 71% of its business comes from the U.S. and there is lots of growth internationally.

It's the best in medical devices. Tailwinds are the aging demographic and rising elective surgeries coming back.

It is a great company, well run, and a core holding. They execute very well on the orthopedic side and is one of the leaders. Five years ago they launched the robotic assisted surgery component which is performing very well. He sees it as a double digit compounder.

They will buy Inari Medical which largely treats a condition called VTE (impacts 900,000 Americans), which will enhance SYK's neuro-vascular business. He likes this deal.

Such an important area. Fell during Covid because classified as "elective" surgeries, but they aren't, as they help maintain quality of life without medication. Lots of opportunity to grow in EMs. Lots of free cashflow, which can be used for acquisitions.