Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Stryker Corporation as such a stock due to the following factors:
- SYK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $106.4 million.
- SYK is down 2.4% today from today's close.
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More details on SYK:
Stryker Corporation, together with its subsidiaries, operates as a medical technology company. The company operates in three segments: Reconstructive, MedSurg, and Neurotechnology and Spine. The stock currently has a dividend yield of 1.5%. SYK has a PE ratio of 56.3. Currently there are 11 analysts that rate Stryker Corporation a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for Stryker Corporation has been 1.3 million shares per day over the past 30 days. Stryker has a market cap of $35.8 billion and is part of the health care sector and health services industry. The stock has a beta of 1.33 and a short float of 1.3% with 4.17 days to cover. Shares are down 0.3% year-to-date as of the close of trading on Monday.
rates Stryker Corporation as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- SYK's revenue growth has slightly outpaced the industry average of 7.2%. Since the same quarter one year prior, revenues rose by 11.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.46, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.47, which illustrates the ability to avoid short-term cash problems.
- STRYKER CORP's earnings per share declined by 40.7% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, STRYKER CORP reported lower earnings of $2.63 versus $3.39 in the prior year. This year, the market expects an improvement in earnings ($4.75 versus $2.63).
- The gross profit margin for STRYKER CORP is rather high; currently it is at 67.94%. Regardless of SYK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SYK's net profit margin of 2.38% is significantly lower than the industry average.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full Stryker Corporation Ratings Report.