A top medical technology stock is trading at a big discount. Here's why I'm buying
A cyberattack and operational setbacks have weighed on Stryker shares, but investor Sarat Sethi sees a buying opportunity.
TL;DR
- Stryker is a global medical technology leader founded in 1941, generating over $25 billion in annual revenue.
- The company holds top positions in virtually all its markets and has consistently grown faster than the broader medical technology industry.
- Stryker's position in robotic-assisted surgery, particularly with its Mako system, presents a significant growth opportunity.
- Shares have declined due to a recent cyberattack and concerns about potential government healthcare funding cuts, but these are viewed as temporary challenges.
- The stock is trading at a discount to its historical valuation, offering an attractive entry point for long-term investors.
- Spencer Stiles will succeed Kevin Lobo as CEO, with Lobo moving to executive chairman, a transition seen as positive.