5 Stocks Receiving a Massive Vote of Approval From Wall Street Analysts

03. Stryker Corporation (NYSE:SYK)

Price Reaction after the Upgrade: +18.84 (+5.95%)

On January 31, Canaccord Genuity analyst Kyle Rose made a significant adjustment within the healthcare industry by upgrading Stryker (NYSE: SYK) from a Hold to a Buy rating. This upgrade reflects a reevaluation of Stryker Corporation (NYSE:SYK) performance, market position, and growth potential within the medical devices sector. Following the upgrade, Stryker experienced a substantial increase of 5.95% in its market price on the closing bell of January 31, reaching $335.37. This surge in market price indicates a positive market response to Rose’s upgraded outlook for Stryker. The upgrade suggests that Canaccord Genuity perceives Stryker as undervalued relative to its potential, signaling confidence in the company’s ability to deliver shareholder value. Overall, Canaccord Genuity’s upgrade of Stryker Corporation (NYSE:SYK) represents an endorsement of the company’s growth prospects and market opportunities within the healthcare sector. Despite the short-term market price increase, Rose’s analysis suggests that Stryker Corporation (NYSE:SYK) is well-positioned to capitalize on emerging trends and solidify its position as a leader in medical devices and equipment.

Baron Health Care Fund stated the following regarding Stryker Corporation (NYSE:SYK) in its fourth quarter 2023 investor letter:

“We initiated a position in Stryker Corporation (NYSE:SYK) during the quarter. Stryker is a large diversified medical device company with two business segments: (1) MedSurg and Neurotechnology, and (2) Orthopedics and Spine. The stock sold off during the quarter along with many other medical device stocks because of concerns about the impact of GLP-1 weight loss medicines on their business. Specific to Stryker, the concern was that weight loss would reduce demand for hip and knee implant procedures because obesity is one factor that drives osteoarthritis. We think this concern was overstated and saw the sell-off as an opportunity to buy a high-quality growth company at a reasonable valuation. We think Stryker is well positioned with its broad product portfolio to benefit from the trend of more orthopedic and other medical procedures moving from the hospital to ambulatory surgery centers. The company also has several new product launches coming up that should drive growth. At its recent Investor Day, management provided long-term financial goals including organic sales growth at the high end of the medical technology industry and double-digit EPS growth.”