Is Stryker Stock Underperforming the Dow

Healthcare (names I - Z) - Stryker Corp_ logo on phone-by Piotr Swat via Shutterstock

Stryker Corporation (SYK), headquartered in Portage, Michigan, is a premier global medical technologies firm celebrated for its innovative medical devices and equipment. With a market cap of $130.67 billion, Stryker is a dominant force in the healthcare sector, offering an extensive range of products and services that enhance surgical and medical procedures. Competing vigorously with other top-tier medical technology companies, Stryker's main rivals include Medtronic (MDT), renowned for its advanced medical devices and solutions.

Companies worth $10 billion or more are generally classified as “large-cap stocks.” Stryker fits well into this category, signifying its significant size, stability, and influence in the medical technology industry. 

SYK shares are trading 5.4% below their 52-week high of $361.41, which they hit on Mar. 11. SYK has seen a 3.8% decrease over the last three months compared to the 1.2% decline seen in the Dow Jones Industrial Average Index ($DOWI) during the same period.

In the long term, SYK is up 14.2% YTD, and the shares have gained 16.5% over the past 52 weeks. In comparison, the Dow is up 1.9% in 2024 and 13.1% over the past year.

Also, SYK has been trading above its 200-day moving average since mid-November 2023 and its 50-day moving average since late May.

Stryker reported its Q1 results on Apr. 30. Following the earnings release, SYK shares saw a marginal decline and a 2.5% decline the following day. The company reported net income of $788 million. Adjusted earnings, considering amortization costs and pretax expenses, were $2.50 per share, surpassing Wall Street's expectations of $2.35 per share. 

The company's revenue for the quarter was $5.24 billion, exceeding the $5.05 billion forecasted by analysts. Looking ahead, Stryker anticipates full-year earnings to be between $11.85 and $12.05 per share.

Highlighting the contrast in performance, SYK's competitor, Medtronic, has underperformed SYK, with a marginal decline on a YTD basis.

Analysts are optimistic about SYK's prospects despite its recent underperformance compared to DOWI. The stock has a consensus rating of "Moderate Buy" from 27 analysts in coverage. The mean price target of $377.52 reflects a 10.4% premium over current levels.

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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.