NEW YORK (TheStreet) -- Stryker Corp (SYK) stock has been upgraded to "buy" from "hold," Argus Research said Wednesday. The firm allocated an $102 price target, noting the company is generating solid growth outside of orthopedics.
Must Read: Warren Buffett's 25 Favorite Stocks
Separately, TheStreet Ratings team rates STRYKER CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate STRYKER CORP (SYK) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- SYK's revenue growth has slightly outpaced the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 5.3%. 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, 0.34, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, SYK has a quick ratio of 1.54, which demonstrates the ability of the company to cover short-term liquidity needs.
- Compared to its closing price of one year ago, SYK's share price has jumped by 30.50%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp 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 other strengths this company displays justify these higher price levels.
- The gross profit margin for STRYKER CORP is rather high; currently it is at 68.89%. 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, the net profit margin of 3.03% trails the industry average.
- STRYKER CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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 ($4.82 versus $2.63).
- You can view the full analysis from the report here: SYK Ratings Report