Stryker Corp (SYK, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $280.02, Stryker Corp has witnessed a daily loss of 2.56%, marked against a three-month change of -4.52%. A thorough analysis, underlined by the GF Score, suggests that Stryker Corp is well-positioned for substantial growth in the near future.
Decoding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
Here is a breakdown of Stryker Corp's GF Score:
- Financial strength rank: 5/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 10/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With a high profitability rank and an impressive growth rank, GuruFocus assigned Stryker Corp the GF Score of 93 out of 100, which signals the highest outperformance potential.
Understanding Stryker Corp's Business
Stryker Corp, with a market cap of $106.34 billion, designs, manufactures, and markets an array of medical equipment, instruments, consumable supplies, and implantable devices. The product portfolio includes hip and knee replacements, endoscopy systems, operating room equipment, embolic coils, hospital beds and gurneys, and spinal devices. Stryker remains one of the three largest competitors in reconstructive orthopedic implants and holds the leadership position in operating room equipment. Just over one fourth of Stryker's total revenue currently comes from outside the United States.
Profitability Rank Breakdown
The Profitability Rank shows Stryker Corp's impressive standing among its peers in generating profit. Stryker Corp's strong Predictability Rank of 4.5 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, Stryker Corp demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 7.2%, which outperforms worse than 50.34% of 731 companies in the Medical Devices & Instruments industry. Moreover, Stryker Corp has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 2.9, and the rate over the past five years is 4.1. This trend accentuates the company's continued capability to drive growth.
Given Stryker Corp's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. This analysis underscores the importance of considering these key financial metrics when making investment decisions. GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen