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.
Comments (including suggestions for company studies) and questions welcome.
Disclosure: I am long SYK.