5-Star Stocks Poised to Pop: Stryker
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, orthopedic devices giant Stryker (NYS: SYK) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Stryker's business and see what CAPS investors are saying about the stock right now.
Stryker facts
Headquarters (Founded) | Kalamazoo, Mich. (1941) |
Market Cap | $19.5 billion |
Industry | Healthcare equipment |
Trailing-12-Month Revenue | $8.1 billion |
Management | Chairman/CEO Stephen MacMillan |
Return on Equity (Average, Past 3 Years) | 17.7% |
Cash/Debt | $3.2 billion / $1.8 billion |
Dividend Yield | 1.7% |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 98% of the 1,473 members who have rated Stryker believe the stock will outperform the S&P 500 going forward.
This past fall, one of those bulls, Cardz, nicely summed up the bull case for our community:
Slow and steady wins the race; [Stryker] may not burn any barns, but its positioned to take advantage of a huge long-term trend in the medical field. People are replacing their hips, knees and other joints regularly now with better surgical techniques and longer life-spans, our bodies just were not built for the long-term abuse we subject them to and [Stryker] will rake in profits as long as there are humans on this planet. I've been an avid investor in this company for decades.
But before you run out and start gobbling up shares, some of Stryker's peers might actually be better suited to your own individual investing profile.
Johnson & Johnson (NYS: JNJ) , for example, boasts a higher dividend yield than Stryker, so it might be better a selection for income-oriented investors. Meanwhile, Medtronic (NYS: MDT) has historically posted much higher returns on equity, giving it the edge in terms of "quality." And Baxter International's (NYS: BAX) lower P/E makes it a more favorable bargain opportunity. However, when you consider that Stryker is expected to grow its bottom line at a faster rate than each of its peers mentioned above, the stock seems nicely suited for investors looking for a low-risk way to go for growth.
What do you think about Stryker, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Johnson & Johnson and Medtronic. Motley Fool newsletter services have recommended buying shares of Johnson & Johnson and Stryker. Motley Fool newsletter services have recommended creating a diagonal call position in Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
