Are These 3 Stocks Survivors? – Johnson & Johnson (JNJ), Stryker Corporation (SYK), Boston Scientific Corporation (BSX)

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For all its struggles, as 4Q and 2012 revenues and net income didn’t measure up to 2011 levels, Boston Scientific Corporation (NYSE:BSX) generates about $100 million in free cash flow each month. The company just launched a $1 billion share buyback program, and expects to use future cash either for buying back additional shares or to fund acquisitions.

JNJ’s Woes

It’s not all smooth sailing at JNJ, either. A Johnson & Johnson (NYSE:JNJ) subsidiary was recently forced to recall a knee replacement device after the U.S. Food and Drug Administration said the device could lead to problems such as an infection or even death. Incidentally, the device is a product of the DePuy Synthes Companies of Johnson & Johnson.

Shares of Johnson & Johnson (NYSE:JNJ) are trading near a 52-week high, and the stock has a trailing price-to-earnings ratio of about 20. It’s fair to say that an investment in Johnson & Johnson (NYSE:JNJ) is also an investment in its MD&D business, which could be a catalyst for growth in the coming years. If the company makes any drastic changes, such as to separate any of its businesses, that would be a game changer.

Surviving

All three of the aforementioned stocks that participate in the medical device market are surviving. Boston Scientific is up 25% since last year, and perhaps the new CEO could help this trend to continue. Conversely, there is a lot of short interest in Stryker, according to a recent Forbes article. It’s a volatile group that trades in a market plagued with uncertainty. As long as these companies continue to capture market share from the emerging markets there is a catalyst for growth, which could serve as a reward to shareholders.

The article Are These 3 Stocks Survivors? originally appeared on Fool.com and is written by Gerelyn Terzo.

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