Stryker Corp. (SYK-N)

73% of their business comes from the U.S. with the rest from Europe and emerging markets. They make great surgical products (i.e. hip replacements). Also, surgeons are loyal to SYK products and rarely change brand. Aging demographics and foreign markets offer growth.

Problem with the chart right now is it's making a lower high and a lower low. Looks like we just took out the last low. In the near term, that's a downtrend. He doesn't buy into downtrends or ride downhill rollercoasters. If it does decide to stop, reasonable chance that it will stop near old breakout point, ~$300. If it finds support and bounces off, could be a great time to buy.

Wonderful business, one of the best operators in healthcare. Balance sheet back to being clean and ready to make acquisitions. Expects extremely strong results. A leader, and gaining market share. Valuation is pricey, needs to deliver future gains, so stock's hit a wall. He's still buying, loves it long term.

Sales machine. Market leader in joint replacement and medical products. Post-pandemic backlogs still huge. Double-digit topline revenue growth last few years, should continue. Acquisitive. Good free cashflow. Still growth in EMs. Valuation's run up, but he's not selling.

Has since sold shares. Believes stock is fully valued. Medical device business performing well. Surgeries recovered after pause during Covid-19 pandemic. 

Demographic tailwind. User loyalty. Most revenue comes from US. Global growth opportunities, especially in EM. Medical devices are really changing how people live. Covid backlog is being caught up. Tuck-on acquisitions. Yield is 0.9%.

Revenue: US (73%), developed world (19%), emerging markets (rest). Lots of good growth internationally. Demographic play. Strong brand loyalty. Free cash will be used for acquisitions. Great compounding story for the next several years. Yield is 0.9%.

AI and weight-loss drugs are the two manias in the market now. SYK makes medical devices (hip and knee), but you must be below a certain weight to qualify for these operations.  The weight-loss drugs will open a greater market for SYK.

Great story. Medical devices is a really important area of healthcare. Tremendous brand loyalty from end-user, plus a demographic play. Great operating margins and quarterly numbers, which will just keep on getting better. Lots of growth internationally. Yield is 0.9%.

Medical devices are an important area that keeps people out of expensive hospitals, improves quality of life, and reduces reliance on drugs. Great advances, which will grow over the years. You want to be in this area. He owns SYK and JNJ in the space.

Medical devices. Joint replacements. Huge backlog due to Covid. Costs increased from supply chains and labour, but now sorted out. Really improves quality of life. Great business, lots of growth from aging demographics. Lots of growth internationally, too. Once a doctor "buys in", tremendous brand loyalty. Yield is 1%.

It is in the medical devices field producing parts for artificial knees, hips, etc. and improving patient quality of life. Surgeons tend to stick with the same products so there is a stability to its income. The backlog from Covid is being decreased but there is room to grow internationally and an aging population needs more of these surgeries. 72% of its business comes from the U.S. and the rest from emerging markets and the developed world. They have lots of free cash flow to buy other companies.       Buy 18  Hold 11  Sell 1

Doing well given the backlog in surgeries. 73% of their business is in the US, but there's growth in emerging markets where they also operate. Doctors stick with their products and seldom change. Also, aging demographics help. They could make acquisitions, which will benefit them.

SYK has performed well this year, increasing as much as 24% year-to-date and as high as 48% (before the recent sell-off) on a one-year basis. Its valuation reached its historical high point of ~5.5X forward sales and ~28X forward earnings. Its fundamentals are strong and it continues to expand on most metrics, but we feel that its valuation became too stretched and we're beginning to see its price decline alongside the broader US healthcare market. We would be comfortable continuing to hold this name as part of a long-term healthcare position. 
Unlock Premium - Try 5i Free