Stryker Corporation is a medical device company based out of Michigan, USA. It specializes in surgical equipment, joint replacement implants, endoscopic and communications equipment, spinal, neurosurgical, and neurovascular devices, and other medical devices. Stryker tends to directly market its products to healthcare facilities, hospitals, and doctors. Stryker may be an American company. But, its presence is very much global and it does business in more than 100 countries.
Stryker has 3 main business divisions. The first is orthopedics, the second is medical and surgical, and the third is neurotechnology and spine. The orthopedics segment deals with implants for knee and hip joint replacements. Implants used in trauma and extreme surgeries are also included. The medical and surgical segment deals with surgical equipment, patient handling equipment, communications systems as well as endoscopic systems. The neurotechnology and spine segment deals with products for brain and skill surgeries, synthetic bone grafts, etc.
COVID Has Been A Headwind For Stryker
The COVID pandemic has been positive for a lot of healthcare businesses. However, quite a few healthcare and medical companies have also faced headwinds. Medical device companies like Stryker Corporation are one of the latter ones. The company faced a reduction in demand as people around the world postponed non-emergency and elective procedures. A lower number of procedures means lesser use of medical devices and implants. This, in turn, results in lower revenues for companies like Stryker.
Stryker Corporation’s stock closed at $245 on 21st December 2020. It has gained about 16.5% in the year 2020. When compared to the lows that the stock hit in March 2020, Stryker Corporation’s stock has gained about 93% and has almost doubled. Currently, it trades at a 1% dividend yield. For comparison, we looked at Boston Scientific. Its stock closed at $35 on 31st December 2020. Its stock is down 20% for the year 2020. Boston Scientific has gained a modest 39% since the March market crash.