Is There Now An Opportunity In Stryker Corporation (NYSE:SYK)?

Today we're going to take a look at the well-established Stryker Corporation (NYSE:SYK). The company's stock maintained its current share price over the past couple of month on the NYSE, with a relatively tight range of US$324 to US$355. However, does this price actually reflect the true value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Stryker’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Stryker

What's The Opportunity In Stryker?

According to our valuation model, Stryker seems to be fairly priced at around 1.07% above our intrinsic value, which means if you buy Stryker today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $333.78, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, Stryker has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from Stryker?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 46% over the next couple of years, the future seems bright for Stryker. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? It seems like the market has already priced in SYK’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on SYK, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into Stryker, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 2 warning signs for Stryker you should know about.

If you are no longer interested in Stryker, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com