Stryker Corp. (SYK)

(A Top Pick April 7/14. Up 21.7%.) The healthcare sector is kind of fragmented into biotech, pharmaceutical and equipment. His view on the equipment side is quite constructive. Demographics are positive. Also, you don’t have the regulatory side that you have with the drugs.

(A Top Pick April 7/14. Up 13.91%.) Part of this company is focused on technology. They are known as the knees and hips type of company. Going forward, this offers a ton of opportunities, anywhere from demographics to healthcare. Good balance sheet and good management team.

Joint replacements. A great international growth story. The rising middle class globally will be spending more money on health care, so it is a good longer-term global story. Strong balance sheet. Very high return on equity at around 18%-19% consistently. Growing their dividend at around 25% compounded over the last 3-4 years.

(A Top Pick Nov 19/13. Up 27.13%.) Have recently made acquisitions on the technology side. Longer-term, this company is in great shape.

(A Top Pick Dec 5/13. Up 24.4%.) Fantastic history of increasing the dividend. Well-run company. Good international growth profile. Strong balance sheet. Trading at a very reasonable valuation. A good, long-term growth stock.

(A Top Pick Nov 19/13. Up 20.73%.) Artificial hips, joints etc. There has been some consolidation and there will be more. This is one of the bigger names, so they could be the buyer. Technology is playing a big role. Demographics will play a big role in this. He is also looking at other names in this space.

Medical devices, such as hips and knees. She does like the space which plays into aging demographics. She gets her exposure through Johnson & Johnson (JNJ-N), which has other divisions making their earnings more stable.

Generally, this is fine. It is a good company. They do medical beds, surgical implants and things like that. Has struggled at various points, but overall he feels there is a bit of a renaissance in healthcare and hospitalizations. Probably a mild Buy, not a table pounder.

(A Top Pick Nov 19/13. Up 14.69%.) This company makes knees, hips and are starting to get into some of the shoulder area. Likes the name. Demographics will play favourably. Over the long-term, he is constructive on this company.

(A Top Pick Oct 8/13. Up 25.76%.) Great, great growth story. Compounded dividend growth in the last 5 years was around 25% per annum and he expects more of this. Great growth story in terms of healthcare story in the US with more people spending money on surgery.

In valuations, they are at the lower end of the group. There are a few factors going on, more industry-specific. You would think there was a very good demand from an aging population, but you are also getting all the change within the industry, where there are larger buying groups. With the valuations where they are, this is okay, but you’re not getting a fabulous deal. Pretty good company and a pretty good stock to own. Trading at 17X forward earnings.

Sector that has come up a little in value. Great long term demographic. Knees and Hips, expanding into Shoulders and Feet. 4-6% organic growth plus any acquisitions. Yield is marginal, 1.5%, but returning something.

(Market Call Minute.) Likes the company’s business, but it is a little bit expensive.

Would recommend this as a long Hold. Equipment manufacturing component of the healthcare business is the most exciting. There is starting to be a big increase in operations. Just made an acquisition of a company that manufactures robots that does surgery. 5 years out, 18% of all surgeries are going to be performed by robots. This company is a dominant player.

This is a play on joint and hip replacements. They are also into hospital equipment such as beds and lights over the beds. Big innovator and great long-term track record of growing the dividends. Yield of 1.67%.