Last week Stryker reported earnings; it beat on revenue but missed on profit estimates. Just before Covid wrecked the markets in March last year, Stryker was trading at around $225 a share. Currently the share price is around $230, it's up, but not by much, especially if we compare it to the likes of the technology companies.
Stryker is a company that makes money off of surgeries. All their hips, knees and medical equipment require surgeries for them to make sales. Due to Covid, elective surgeries were delayed. As the world went back to normal, Stryker was playing catch up. Looking at comparative year on year sales, Stryker's 2020 Q4 figure was better than their 2019 Q4 figure. For the full year though, Stryker's revenue was down 3% to $14.4 billion.
We really like the healthcare devices industry. It has huge potential due to ageing populations requiring more surgery and it has less scrutiny than the drug manufacturers. Further growth can also come through a greater international presence. At the moment, $3 billion in quarterly sales are from the US and only $1 billion is from the rest of the world.
We think this company needs to have a core place in any portfolio. The best part is that you get to pay 2020 prices to own it. Who doesn't like a great deal?