Stryker Q3 - Good Sales Growth

Stryker was hit hard by Covid because elective surgeries were halted and hospitals' priorities changed drastically. As the world slowly normalises, the recovery has been lumpy. People needing hip and knee replacements have booked appointments in droves but theatre staff are in short supply as Covid variants keep popping up.

That's the picture painted in Stryker's most recent results. Sales grew 11.3% from this time last year to $4.2 billion which missed estimates. Management also reduced their guidance slightly, which is against the current trend in our stock holdings.

The medical device industry is a good sector to invest in. People are living longer and their joints are getting rustier. We chose Stryker because it's a very well-run business with some of the best technologies in the industry. That gives us confidence that they will successfully navigate the current challenges.

The market seems to agree, because the Stryker share price has doubled since the Covid lows and is trading near an all-time high. Having said that, it has not performed nearly as well as some of the tech giants. We still see Stryker as a core-holding in our portfolios and the best way to benefit from a multi-decade surge in elective surgeries.

The picture below is the latest Stryker knee replacement. Looks neat!