Morningstar Rating

Stock Research and Analysis

by Debbie S. Wang

Bulls Say

The acquisition of Trauson should extend Stryker's presence in China and provide a solid foothold in the fast-growing Chinese value segment of orthopedics.
As hospitals and health-care systems aim to consolidate suppliers, Stryker should benefit as those customers are more likely to stick with the most widely used brands to accommodate more of their surgeons.
Considering how resistant orthopedic surgeons are to hospital efforts to restrict brand choice and the slow transition to hospital employment, we think surgeon influence will slowly wane. Read more 

Bears Say

Stryker's recalled metal-on-metal hip implants leave the firm vulnerable to ongoing costs related to treating those patients. Additionally, it is not yet clear what magnitude of exposure Stryker faces for damages related to the implants.
Thanks to Boston Scientific's historical underinvestment in its neurovascular segment, Stryker must now play catch up in order to maintain its leadership position in embolic coils.
Although Stryker has pointed to emerging markets as a source of growth, we think this geography remains immaterial to the firm's overall business in the near and mid-term. Read more 

Management

Stryker's Stewardship Rating remains at Standard. Following the surprising resignation of CEO Stephen MacMillan in early 2012, Kevin Lobo stepped into the president and CEO role in the fall. Lobo had been leading Orthovita, and he joined Stryker in   Read more 

Profile

Stryker designs, manufactures, and markets an array of medical equipment, instruments, and devices. The product portfolio includes hip and knee implants, endoscopy systems,  Read more 

Health Care a Leader in Moat Stocks 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.