ZBH - Stryker: Margin Gains Should Drive Upside
2024-05-31 02:45:30 ET
Summary
- Stryker's first quarter results were strong, with profit margins increasing and solid procedure volumes supporting growth.
- The company's capital order book remains strong, which, along with new product launches, should help to support growth as pandemic related patient backlogs decline.
- Stryker's current valuation probably doesn't leave much room for further multiple expansion in the near-term, but continued growth and margin expansion should see the stock move higher over time.
Stryker's ( SYK ) first quarter results were relatively strong given the potential for declining patient backlogs to create headwinds. Of particular note, Stryker's profit margins continue to move higher, supported by a healthy pricing environment. Stryker's valuation probably caps near-term upside, but continued solid growth and margin gains should see the stock move higher over time....
Stryker: Margin Gains Should Drive Upside