By Peet Serfontein & Khumbulani Kunene
Stryker Corporation is a leading United States (US)-based health tech company that develops, manufactures, and markets specialty surgical and medical products. The company's products include implants, biologics, surgical, neurologic, ear, nose and throat and interventional pain equipment, endoscopic, surgical navigation, communications and digital imaging systems, as well as patient handling and emergency medical equipment.
Stryker operates globally, supplying hospitals and healthcare providers with advanced medical devices and systems. The company has invested in AI as well as in research and development, maintaining a competitive edge in the healthcare and life sciences sector.
Technically, strong seasonal strength presents a promising investment opportunity (see the insert on the main chart). Stryker delivered some of its strongest average monthly returns in January (+2.7%), November (+1.7%) and December (+2.7%) since 2000. Though future gains are guaranteed, seasonal strength can reinforce a bullish outlook when aligned with other positive technical or fundamental factors.
Convergence in the price is notable. As the price continues to coil within the narrowing range, a breakout becomes increasingly likely. A decisive break above the upper resistance trendline would signal a bullish continuation.
The Elliot Wave analysis outlines a clear progression of higher highs and higher lows highlighting a consistent upward trajectory, suggesting a larger impulsive wave pattern may be unfolding.
Muted upside price momentum per the MACD histogram, as well as the recent sideways trajectory of the on-balance volume (OBV) indicator, supports our bullish view.
| Share Information | |
|---|---|
| Share Code | SYK |
| Industry | Health Care Equipment & Services |
| Market Capital (USD) | 144.16 billion |
| One Year Total Return | 17.91% |
| Return Year-to-Date | 5.19% |
| Current Price (USD) | 377 |
| 52 Week High (USD) | 406 |
| 52 Week Low (USD) | 316 |
| Financial Year End | December |
| The price is using its 200-day simple moving average (SMA) as support, which also supports a bull case for the stock. | |
| Consensus Expectations (Bloomberg) | ||||
|---|---|---|---|---|
| FY24 | FY25E | FY26E | FY27E | |
| Headline Earnings per Share (USD) | 12.19 | 13.49 | 14.82 | 14.48 |
| Growth (%) | 10.66 | 9.84 | 11.20 | |
| Dividend Per Share (USD) | 3.20 | 3.29 | 3.47 | 3.68 |
| Growth (%) | 2.94 | 5.31 | 6.05 | |
| Forward PE (times) | 27.95 | 25.45 | 22.89 | |
| Forward Dividend Yield (%) | 0.87 | 0.92 | 0.98 | |
| Medium-term growth prospects remain positive for the group, with momentum expected to improve over the next few financial periods. | ||||
Buy/Sell Rationale:
Technical Analysis:
Long-term Fundamental view
| Share Name and Position | ABBV - Buy (Continue to hold) |
ETN - Buy (Continue to hold) |
MSI - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 185.72 | 334.86 | 422.93 |
| Current Price | 198.55 | 356.45 | 434.05 |
| Movement | +6.9% | +6.4% | +2.6% |
| Comment |
An upward sloping inclining channel pattern remains of interest. Crossed above its 200-day simple moving average (SMA). Upside price momentum is supportive.
Our profit target is $216 with a trailing stop-loss at $174. |
A price that seems to be developing wave b of the Elliott Wave price theory remains of interest. Remains above its 200-day SMA. Fading upside price momentum is a concern.
Our profit target is $395 with a trailing stop-loss at $332. |
A price at the start of wave five of the Elliott Wave price theory remains of interest. Remains just below its 200-day SMA. Upside price momentum is supportive.
Our profit target is $476 with a trailing stop-loss at $406 |
| Time to exit | 20 August 2025 | 28 April 2026 | 13 August 2025 |
| Share Name and Position | MCD - Buy (Continue to hold) |
ADP - Buy (Continue to hold) |
MET - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 299.17 | 308.64 | 79.32 |
| Current Price | 298.77 | 299.44 | 74.89 |
| Movement | -0.1% | -3.0% | -5.6% |
| Comment | A well-defined inclining channel pattern remains of interest. Continues to test its 200-day simple moving average. Fading downside price momentum is supportive. |
A developing rising wedge pattern remains of interest. Dipped below its 200-day simple moving average. Downside price momentum is a concern.
Our profit target is $336 with a trailing stop-loss at $298. |
A developing rising wedge pattern remains of interest. Remains below its 200-day simple moving average. Downside price momentum is a concern.
Our profit target is $89 with a trailing stop-loss at $74. |
| Time to exit | 1 October 2025 | 30 September 2025 | 29 August 2025 |
| Share Name and Position | FTNT - Stop Loss (Close the Position) |
|---|---|
| Entry | 104.93 |
| Current Price | 97.36 |
| Movement | -7.2% |
| Comment | The share triggered a stop-loss, prompting us to close the position. |
| Time to exit |
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