Biotech Breakout: Will 2025 Be a Pivotal Year?
Stryker’s Stellar Performance
Medical products giant Stryker (SYK) has been on a roll, reporting double-digit profit growth every quarter last year, with revenue growth in all but one quarter. The question on everyone’s mind is: Can it sustain this momentum in 2025?
Upgraded Relative Strength Rating
On Monday, Stryker’s Relative Strength (RS) Rating received a boost from 70 to 74, indicating that it outperformed 74% of stocks in terms of price performance over the past year. Historically, stocks with an RS Rating of 80 or higher have gone on to make significant gains.
Impressive Ratings Across the Board
Stryker’s other ratings are equally impressive. It boasts an 88 EPS Rating and an 89 Composite Rating, placing it in the top 11% of stocks overall. Its SMR Rating (sales + profit margins + return on equity) is a stellar A on an A-to-E scale. Additionally, its C Accumulation/Distribution Rating suggests that funds are buying its shares at a rate similar to those selling.
Growing Institutional Support
A bullish indicator is the increasing number of funds holding Stryker shares, which rose from 3,089 in the June-ended quarter to 3,112 in December.
A Leader in Medical Equipment
Based in Portage, Michigan, Stryker manufactures a wide range of medical equipment, including orthopedic implants, surgical instruments, spinal and emergency treatment gear, and other devices.
Watchlist Candidate
Stryker stock is building a flat base with a 398.20 entry. Investors should keep an eye on whether the stock can break out in volume at least 40% higher than normal.
Earnings and Revenue Growth
Earnings grew 17% last quarter to $2.87 per share, up from 11% in the prior report. Revenue growth also increased, from 9% to 12%, to $5.49 billion. Analyst consensus expects double-digit EPS growth to continue for at least the next three quarters, with sales growth expected to slow slightly.
Industry Peers
Stryker ranks 13th among its peers in the Medical-Products industry group, which includes top-rated stocks like Globus Medical (GMED), Boston Scientific (BSX), and Insulet (PODD).
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