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Mark Robertson is the founder of www.manifestinvesting.com. Manifest Investing features an e-newsletter focusing on successful long-term investing including web-based investment research and features for stock and fund screening. Other tools provide resources for portfolio design and management.... More
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Weekly Message: Expected Returns
  • Stryker (SYK): More Than Medical Devices. Better Lives. 0 comments
    Apr 20, 2012 7:20 PM | about stocks: SYK

    Stryker (NYSE:SYK) reported fairly solid results this past week as earnings season unfolds. At Manifest Investing, we gauge the impact/influence of any results or shifts in consensus forecasts on long-term trends for growth, profitability or valuation.

    In the case of Stryker, we have a long-term:

    (1) Sales growth forecast of 7.6%

    (2) Net margin forecast of 17.9%

    (3) Projected average P/E of 15.0x

    This results in a 5-year EPS forecast of $5.76 and the 9.9% projected annualized price appreciation combines with a 0.8% yield to deliver a projected annual return (NYSE:PAR) of 10.7%.

    Stryker's financial strength (A++) combines with high relative consistency in EPS trends, along with favorable competitive comparisons with peers and other medical device (orthopedic) companies to form an excellent quality rating.

    The following video provides a summary of stock study highlights.

    http://www.youtube.com/watch?v=9TpVht63Ylk

    Comments (including suggestions for company studies) and questions welcome.

    Disclosure: I am long SYK.

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