Saturday, October 27, 2012

5-Star Stocks Poised to Pop: Stryker

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, orthopedic devices giant Stryker (NYSE: SYK  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Stryker's business and see what CAPS investors are saying about the stock right now.

Stryker facts

Headquarters (Founded) Kalamazoo, Mich. (1941)
Market Cap $18.8 billion
Industry Health-care equipment
Trailing-12-Month Revenue $7.82 billion
Management

Chairman/CEO Stephen MacMillan

CFO Curt Hartman

Return on Equity (Average, Past 3 Years) 18%
Cash/Debt $2.7 billion / $1 billion
Dividend Yield 1.5%
Competitors

Baxter International (NYSE: BAX  )

Johnson & Johnson (NYSE: JNJ  )

Zimmer Holdings (NYSE: ZMH  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 98% of the 1,441 members who have rated Stryker believe the stock will outperform the S&P 500 going forward. These bulls include All-Star Trimalerus, who is ranked in the top 5% of our community, and Tradersinfo.

Earlier this summer, Trimalerus tapped Stryker as a perfect fit for this article series: "Best price since last year on this Blue Chip stock. ... Aging boomer generation will create greater demand in this sector overall and Stryker is poised to pop."

Over the next five years, in fact, Stryker is expected to grow its bottom line at a solid rate of 11% annually. That's slightly faster than rivals like Baxter (9.5%), Johnson & Johnson (5.6%), and Zimmer (9.6%).

CAPS member Tradersinfo elaborates on the Stryker bull case:

In this market environment your portfolio is virtually begging for low-risk stocks that could also have at least some upside. Your portfolio's prayers have been answered with Stryker Corp! SYK is a medical equipment maker that is growing at a reasonably fast pace. ... While analysts have reduced their revenue estimates ... this is still one of the highest growth numbers in the Medical Equipment space. The Company boasts several catalysts that are spurring this momentum. Not least is the Neurotechnology and Spine division. ... Stryker is therefore value blended with growth, and certainly not a value-trap.

What do you think about Stryker, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

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