Top 10 Stocks With Big Insider Buying, Buybacks

For the full year, net earnings increased 30.8% to $1.02 billion and EPS increased 29% to $2.44 a share. Net sales were $6 billion, representing a 17% increase over 2006.

The shining star among Stryker's results was its MedSurg Equipment segment, which makes a variety of products including medical and surgical beds. Worldwide sales of MedSurg were $686.6 million for the fourth quarter and $2.42 billion for the year, representing increases of 21% and 19%, respectively. For the past 16 straight quarters, MedSurg has grown at least 14% a year.

Bear Stearns analyst Raj Denhoy believes Stryker's strong fourth-quarter results build momentum as the stock enters 2008. With robust orthopedic sales in every area and MedSurg continuing to expand, he expects another year of 20% EPS growth in 2008. Denhoy maintains his outperform rating on the stock and added, "The balance in Stryker's portfolio and consistent financial discipline make it our top pick in large-cap orthopedics."

Another positive for Stryker is that Atalanta Sosnoff Capital is betting on the stock. The private-investment management company, which has about $5 billion in assets under management, was founded by Martin Sosnoff. Its newest positions are mining company Vale RIO and telecom giant AT&T T.

We also like to see that Grantham, Mayo, Van Otterloo & Co includes Stryker in its portfolio. The privately held global investment management firm, which manages $127 billion in client assets using a blend of traditional and innovative quantitative methods to find undervalued securities and markets, also holds shares of Pfizer PFE and Home Depot HD.

So with Stryker we have a buyback on top of a great quarter, an outperform rating, as well as two well-known investors in the stock. That's a pretty good scenario.

And finally, we have Cypress Semiconductor CY. The chipmaker's board authorized the company to add $300 million to its buyback plan, doubling the size of the program to $600 million.

Cypress on Jan. 24 reported fourth-quarter and full-year earnings, results of which were a mixed bag. The company reported earnings of 24 cents a share, which was just short of guidance in the range of 26 to 28 cents a share. Cypress CEO T.J. Rodgers blamed the weak quarter on an industrywide consumer-segment slowdown.

On a positive note, revenue came in at a record $1.6 billion, up 46% from 2006 revenue of $1.09 billion. Fiscal year 2007 EPS increased 60.8% to 82 cents, compared with 51 cents in 2006. Management expects the normal first-quarter softness; however, they also anticipate record revenue again in 2008.

Rodgers added, "Cypress remained nicely profitable in a softening semiconductor market in the fourth quarter with non-GAAP semiconductor gross margin reaching 48.8%. Our balance sheet contains not only $1.56 billion in cash and equivalents, but a 90% controlling voting stake in SunPower SPWR. It will provide many opportunities for us to drive shareholder value in 2008 and beyond."