Stryker Q3 - Knee deep

Last week, our favourite medical devices business, Stryker, reported pleasing third-quarter numbers. Sales came in at $5.5 billion versus estimates of $5.37 billion and earnings were $2.87 per share versus $2.77. That's a solid beat.

This business is easy to track. They divide sales into two main segments, namely MedSurg and Neurotechnology, and Orthopaedics and Spine. Both divisions grew by over 10% this quarter.

The real magic happens under the hood, with exciting medtech innovations. If they cannot design it themselves, they usually acquire small bolt-on businesses with innovative products.

We first started buying Stryker shares in 2014 after selling out of Caterpillar. Since then it is up 370%. Over the same period the S&P 500 is up 230%. So this one has done a great job for us and our clients.

We continue to like the theme, in fact Paul had a partial knee replacement this week. Good health and mobility are vital to enjoying life. Stryker sells happiness and we like it.