Since February 2025, Stryker has been in a holding pattern, posting a small loss of 3.8% while floating around $377.49. The stock also fell short of the S&P 500’s 4.5% gain during that period.
Is now the time to buy SYK? Find out in our full research report, it’s free.
Why Do Investors Watch Stryker?
With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE: SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.
Three Positive Attributes:
1. Organic Growth Indicates Solid Core Business
We can better understand Medical Devices & Supplies - Diversified companies by analyzing their organic revenue. This metric gives visibility into Stryker’s core business because it excludes one-time events such as mergers, acquisitions, and divestitures along with foreign currency fluctuations - non-fundamental factors that can manipulate the income statement.
Over the last two years, Stryker’s organic revenue averaged 10.2% year-on-year growth. This performance was solid and shows it can expand steadily without relying on expensive (and risky) acquisitions. 
2. Economies of Scale Give It Negotiating Leverage with Suppliers
Larger companies benefit from economies of scale, where fixed costs like infrastructure, technology, and administration are spread over a higher volume of goods or services, reducing the cost per unit. Scale can also lead to bargaining power with suppliers, greater brand recognition, and more investment firepower. A virtuous cycle can ensue if a scaled company plays its cards right.
With $23.82 billion in revenue over the past 12 months, Stryker sports economies of scale. This is important as it gives the company more leverage in a heavily regulated, competitive environment that is complex and resource-intensive.
3. Outstanding Long-Term EPS Growth
Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.
Stryker’s EPS grew at a spectacular 13.3% compounded annual growth rate over the last five years, higher than its 11.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
Final Judgment
There are definitely things to like about Stryker. With its shares trailing the market in recent months, the stock trades at 26.9× forward P/E (or $377.49 per share). Is now a good time to initiate a position? See for yourself in our full research report, it’s free.
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