Trade-Ideas LLC identified

Stryker Corporation

(

SYK

) as a momo momentum 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 $231.9 million.
  • SYK has a PE ratio of 31.
  • SYK is currently in the upper 30% of its 1-year range.
  • SYK is in the upper 25% of its 20-day range.
  • SYK is in the upper 35% of its 5-day range.
  • SYK is currently trading above yesterday's high.
  • SYK has experienced a gap between today's open and yesterday's close of 2.5%.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.

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More details on SYK:

Stryker Corporation, together with its subsidiaries, operates as a medical technology company. The company operates through three segments: Orthopaedics, MedSurg, and Neurotechnology and Spine. The stock currently has a dividend yield of 1.6%. SYK has a PE ratio of 31. Currently there are 14 analysts that rate Stryker Corporation a buy, 2 analysts rate it a sell, and 6 rate it a hold.

The average volume for Stryker Corporation has been 1.6 million shares per day over the past 30 days. Stryker has a market cap of $35.5 billion and is part of the health care sector and health services industry. The stock has a beta of 1.00 and a short float of 1.3% with 1.93 days to cover. Shares are up 3.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Stryker Corporation as a

buy

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 428.1% when compared to the same quarter one year prior, rising from $57.00 million to $301.00 million.
  • SYK's revenue growth trails the industry average of 29.7%. Since the same quarter one year prior, revenues slightly increased by 1.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.41, 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 1.37, which illustrates the ability to avoid short-term cash problems.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, STRYKER CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for STRYKER CORP is rather high; currently it is at 68.88%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.43% is above that of the industry average.

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