Stryker Corporation’s SYK shares closed the trading session at $385.18 on Friday, 5.2% below its 52-week high of $406.19 reached on Jan. 28, 2025.

In the past six months, SYK has gained 13%. In the same timeframe, the Zacks Medical – Products industry and the S&P 500 Index have rallied 10.3% and 9.8%, respectively. While the stock underperformed Boston Scientific's BSX growth of 34.9%, it outperformed another peer, Medtronic’s MDT rise of 9.4% in that same period.

Six-month Price Performance

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SYK reported strong fourth-quarter 2024 performance last month, driven by robust organic sales growth of 10.2%, supported by solid demand across Orthopaedics, MedSurg and Neurotechnology. Key product innovations, including the Pangia plating system and Mako Shoulder, contributed significantly to revenue expansion.

Additionally, increased demand for capital equipment, bolstered by healthy hospital CapEx budgets, further strengthened its performance. SYK also achieved a 200-basis-point improvement in adjusted operating margin, reflecting pricing strategies and manufacturing efficiencies. With continued momentum in high-growth segments, Stryker's strong earnings reinforce its position as a leading player in the medical technology industry.

Key Factors Impacting Stryker Stock

Expansion Into High-Growth Markets: Stryker is increasing its focus on high-growth medical technology segments. With a diversified portfolio in orthopedics, neurotechnology, and medical and surgical (MedSurg) devices, the company is tapping into faster-growing areas, such as robotic-assisted surgery, advanced trauma solutions and interventional spine technologies. This strategic shift will elevate Stryker’s weighted average market growth, allowing it to outperform traditional medtech industry growth rates.

Stryker is investing in enabling technologies, such as the Q Guidance System and Mako Spine, while focusing on the fast-growing interventional spine market. The company’s Pangia plating system is gaining traction, driving robust sales growth in the trauma and extremities segment. It is integrating AI-driven solutions such as Blueprint, which provides AI-assisted pre-planning for orthopedic surgeries, further enhancing the precision and efficiency of its procedures.

With the acquisition of Inari Medical, Stryker is entering the high-growth peripheral vascular market. Inari specializes in mechanical thrombectomy treatments for venous thromboembolism (VTE), a $15 billion addressable market opportunity.

Continued Product Innovation: Innovation remains at the core of Stryker’s growth strategy. These products enhance procedural efficiency, improve patient outcomes and provide hospitals with cutting-edge technology. With a strong R&D pipeline, Stryker is well-positioned to introduce next-generation medical solutions that cater to the evolving needs of healthcare providers.

The first cases using Mako Spine were completed in October 2024, with positive surgeon feedback. The full U.S. commercial launch is expected in the second half of 2025. Stryker received FDA approval and performed the first cases with Mako Shoulder application in December 2024. Mako Shoulder integrates with Stryker’s Blueprint pre-planning software and a leading portfolio of shoulder implants. A full U.S. launch is expected by the first quarter of 2026.

SYK’s new emergency care device, LIFEPAK 35 Defibrillator and Monitor, is also garnering substantial interest, with a robust order book and meaningful sales contribution. Stryker’s camera systems, used in endoscopy and surgical visualization, are also performing exceptionally well despite competitive concerns???. The company strategically plans its product launches to refresh the market before existing models begin to decline in sales.

Meanwhile, Stryker’s Powered Instruments and Waste Management Solutions have been another key contributor to the growth of its MedSurg division, particularly in the Instruments segment. The company reported strong sales in smoke evacuation, waste management, power tools and SteriShield, all of which drove double-digit growth in the quarter.

5-Year Price & EPS Surprise Chart

Robust Capital Equipment Demand: Stryker’s medical, instruments, and endoscopy divisions have reported strong demand, supported by healthy hospital capital expenditure (CapEx) budgets. The demand for capital equipment in the healthcare sector remains strong, driven by hospital expansions, modernization efforts and increasing procedural volumes. Stryker has significantly benefited from this trend, with robust sales in medical, instruments and endoscopy segments.

Additionally, the backlog of capital orders remains elevated, providing revenue visibility for the coming quarters and also indicating sustained demand for its capital-intensive products, such as Mako robotic systems, LIFEPAK 35 defibrillators, OR infrastructure and endoscopy platforms.

As hospitals continue investing in advanced technologies to improve surgical precision and patient outcomes, Stryker is well-positioned to capture market share. The shift toward robotic-assisted surgeries is also further fueling demand, with Mako Spine and Mako Shoulder expected to drive sales in 2025 and beyond. The strong replacement cycle for existing capital equipment and increasing adoption of AI-driven surgical tools should also contribute to future growth.

Sustained Procedural Volumes: Stryker expects continued strength in procedural volumes, supported by favorable demographics, an aging population and increasing patient activity. The rise in elective surgeries and improved patient throughput at hospitals further contribute to this trend. As healthcare providers adopt more advanced surgical techniques, Stryker’s innovative product offerings will play a crucial role in supporting procedural growth.

The adoption of robotic-assisted surgery continues to accelerate, with Mako technology leading the way. Nearly two-thirds of knee replacements and one-third of hip replacements in the United States are now performed using Mako, while international adoption has also surged, with over 45% of knee procedures and 20% of hip procedures utilizing the platform.

Additionally, demographic trends are fueling demand, as an aging population and increasing patient activity contribute to a greater need for orthopedic, trauma and neurovascular interventions. The return of elective procedures to pre-pandemic levels further supports this upward trajectory.

The expansion of ambulatory surgery centers is another critical growth driver, offering increased access to orthopedic and minimally invasive procedures. Stryker has seen record highs in knee and hip surgeries performed in ASCs, with 17% of knee and 14% of hip procedures now conducted in these settings. Furthermore, the company’s surgical portfolio is set to expand with the anticipated launches of Mako Spine and Mako Shoulder, which are expected to further boost procedural volumes in their respective markets.

Analyst Sentiments Bullish for SYK

Analysts seem to be bullish about Stryker’s prospects. The company’s sales and earnings are expected to grow in the near term.

Sales Estimates

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Earnings Estimates

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Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Stryker Stock Trades at a Premium

Given the rally in SYK shares, it appears expensive relative to the industry. The stock is, at present, trading at the forward 12-month price/earnings (P/E) of 28.17X. This is above the industry’s 22.67X, reflecting a stretched valuation.

Price-to-Earnings F12M

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To Buy, Hold or Sell SYK Shares Now?

Stryker has strong fundamentals, especially for MedSurg segment, that are likely to drive its strong performance in 2025. Estimates for 2025 present an encouraging picture for SYK stock.

The acquisition of NARI is likely to be a key benefactor for the company this year as SYK expects the former’s product portfolio to boost its top-line by $590 million of sales in the 2025 stub period and have dilutive impacts on the adjusted operating income margin of 0-20 bps. The acquisition is expected to be accretive by 20-30 cents to the adjusted EPS.

Meanwhile, SYK is also planning to divest its Spinal Implant business, which looks promising as the product division is facing a decrease in future product demand due to the competitive environment. The company recorded a goodwill impairment charge of $273 million for the Spine reporting unit during the fourth quarter, hurting the bottom line.

Rising-Wedge Pattern on Stock Chart

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Meanwhile, the Growth Score of ‘A’ indicates a strong upside. However, the Value score of ‘C’ suggests moderately higher valuation. Also, the Momentum Score of ‘C’ implies slow price movement in the upcoming period. Meanwhile, the company’s share price is trading within a “rising wedge” pattern, which typically implies a potential correction or downtrend once it breaks below the trading range. Moreover, SYK stock always corrected last year each time it made a new 52-week high in 2024. It is exhibiting a similar trend since it touched 52-week high last month.

We caution investors against making any new entry in the stock and wait for the price to reach an attractive valuation. SYK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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