Tuesday, April 12, 2011

Stryker: In the Right Business at the Right Time

BubbleBustInvesting.com submits:

Investors who are concerned about the fate of the stock market once QE2 runs its course should start looking for other catalysts, like the aging of the population that is expected to boost demand for orthopedic surgeries. One of the companies to benefit from this trend is Stryker (SYK), a leader in medical surgical equipment and orthopedic implants.

The company is in the right business at the right time, as it is riding the trend of the massive aging of the baby-boomers. Since it went public in 1979, sales and earnings have grown at a very rapid rate with sales reaching 7.3 billion in 2010 (an 8.9 percent increase over the previous year) and earnings per share of $3.33 (a 12.6 percent increase over the previous year leading to a P/E ratio of 17.7). This strong performance has allowed the company to raise its dividend from 0.50 cents in 2009


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