Upgrades - CoStar Group (CSGP) upgraded to Buy from Neutral with an $80 price target due to low expectations, past peak investment, and momentum from Homes.com, along with an anticipated AI-driven product update [2] - Teleflex (TFX) upgraded to Buy from Hold with a $138 price target as the company plans to sell its acute care, interventional urology, and manufacturing businesses for $2 billion, expecting significant earnings accretion from share repurchases and debt repayment by 2027 [3] - CoreWeave (CRWV) upgraded to Buy from Hold with a $140 price target, with a solid medium-term outlook ahead of the Q4 report [3] - Affirm (AFRM) upgraded to Buy from Hold with a $100 price target after submitting an application to establish Affirm Bank, which could be a game-changer [4] - Target (TGT) upgraded to Peer Perform from Underperform without a price target, with a wide margin of safety despite reduced estimates due to the company's owned real estate [4] Downgrades - Procter & Gamble (PG) downgraded to Hold from Buy with a price target of $156, up from $150, as the pace of recovery is expected to drag [5] - Stryker (SYK) downgraded to Hold from Buy with a $387 price target following a transfer in analyst coverage, with a well-understood valuation reflecting a "beat/raise precedent" [5] - Insulet (PODD) downgraded to Hold from Buy with a $294 price target after a transfer in analyst coverage, noting that competitive advantages may narrow [5] - Matador (MTDR) downgraded to Equal Weight from Overweight with a price target of $47, down from $61, due to stock valuation incorporating structural considerations and recent productivity variability [5] - SkyWater Technology (SKYT) downgraded to Hold from Buy with a price target of $35, up from $24, after agreeing to be acquired by IonQ for $35 per share or $1.88 billion [5]

Core Viewpoint - The Zacks Style Scores provide a framework for investors to evaluate stocks based on value, growth, and momentum, enhancing the decision-making process for stock selection [2][3][7]. Summary by Category Zacks Style Scores - The Zacks Style Scores rate stocks using a grading system from A to F, with A being the highest score indicating a better chance of outperforming the market [3]. - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6]. Value Score - The Value Score helps investors identify undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3]. Growth Score - The Growth Score emphasizes a company's financial health and future growth potential, considering projected and historical earnings, sales, and cash flow [4]. Momentum Score - The Momentum Score assists investors in capitalizing on stock price trends, utilizing metrics like one-week price changes and monthly earnings estimate changes [5]. VGM Score - The VGM Score combines the three Style Scores to identify stocks with attractive value, strong growth forecasts, and promising momentum, serving as a useful indicator alongside the Zacks Rank [6]. Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.83% since 1988, significantly outperforming the S&P 500 [7][8]. Stock Example: Stryker (SYK) - Stryker is a leading medical technology company, generating approximately 60% of its sales from MedSurg & Neurotechnology and 40% from Orthopaedics, with about 75% of revenue coming from the U.S. market [12]. - Stryker holds a 3 (Hold) rating on the Zacks Rank and has a VGM Score of B, with a Momentum Style Score of B, indicating potential for investors [13][14].

Core Insights - Stryker (SYK) is expected to report quarterly earnings of $4.39 per share, reflecting a 9.5% increase year-over-year, with revenues projected at $7.13 billion, a 10.7% increase compared to the previous year [1] Earnings Projections - Analysts have revised the consensus EPS estimate for the quarter upward by 0.1% over the past 30 days, indicating a collective reassessment of projections [1][2] Revenue and Sales Estimates - Analysts predict 'Net Sales by Business- MedSurg and Neurotechnology' to be $4.53 billion, representing a year-over-year increase of 16.8% [4] - The average estimate for 'Net Sales by Geography- Orthopaedics' is $2.61 billion, indicating a 2.3% increase from the prior-year quarter [4] - 'Net Sales by Geography- Orthopaedics- Hips' is expected to reach $504.79 million, reflecting a 9% year-over-year change [5] - 'Net Sales by Geography- United States' is forecasted at $5.44 billion, suggesting an 11.5% increase year-over-year [6] Specific Sales Forecasts - 'Net Sales by Geography- Orthopaedics- United States' is estimated at $1.87 billion, indicating a 17.7% year-over-year change [6] - 'Net Sales by Geography- Orthopaedics- Trauma and Extremities- United States' is projected to be $828.44 million, reflecting an 11.4% increase from the year-ago quarter [6] - 'Net Sales by Geography- Orthopaedics- Knees- United States' is expected to reach $553.93 million, indicating an 8.8% year-over-year change [7] International Sales Estimates - 'Net Sales by Geography- International' is projected at $1.72 billion, reflecting a 10.2% increase year-over-year [5] - 'Net Sales by Geography- MedSurg and Neurotechnology- Neuro Cranial- International' is expected to be $118.93 million, indicating a decline of 21.8% from the prior-year quarter [8] - 'Net Sales by Geography- MedSurg and Neurotechnology- vascular- International' is estimated at $241.70 million, reflecting an 18.5% increase from the year-ago quarter [8] Market Performance - Stryker shares have shown a return of +0.2% over the past month, mirroring the Zacks S&P 500 composite's +0.2% change, with a Zacks Rank 3 (Hold) indicating expected performance in line with the overall market [10]

Industry Overview - The global medical device industry is experiencing rapid technological advances and innovations, with the U.S. market projected to grow at a CAGR of 6.8% from 2025 to 2032 [1] - Hologic and Stryker are two prominent players in this sector, focusing on women's health and surgical products respectively [1][2] Hologic Insights - Hologic's market capitalization is currently $16.71 billion, and it is undergoing a buyout process by Blackstone & TPG, which is expected to enhance its growth and technology delivery [2][1] - The Diagnostics division is anticipated to show strong performance driven by U.S. molecular diagnostics sales, particularly from the BV, CV/TV vaginitis assay and Panther Fusion assays [3] - Recent FDA and CE approvals for new diagnostic products, including the Panther Fusion Gastrointestinal Bacterial Assays, signify advancements in Hologic's diagnostic capabilities [3] - The Breast Health segment is expected to benefit from improved U.S. sales execution and the inclusion of Endomagnetics, which may positively impact revenues [4] Stryker Insights - Stryker has a larger market capitalization of $139.1 billion and operates in approximately 75 countries, with strong demand for its capital products expected to continue [2][5] - The company anticipates achieving 10% organic sales growth for the year despite supply-chain disruptions, driven by strong demand for its LIFEPAK 35 monitor/defibrillator [6] - Stryker's recent acquisition of Inari Medical is expected to enhance its position in the high-growth peripheral vascular segment [7] - The Orthopaedics division is likely to see robust growth due to the success of the Insignia Hip Stem and the Mako robotic hip platform [8] Earnings Estimates - Hologic's first-quarter fiscal 2026 earnings are estimated to grow by 5.8% year over year to $1.09, with a slight upward revision in estimates [11] - Stryker's fourth-quarter 2025 earnings are projected to grow by 9.5% year over year to $4.39, with stable estimates over the past 60 days [13] Price Performance and Valuation - Hologic shares have increased by 17.7% over the past six months, while Stryker shares have declined by 6.1% [13] - Hologic trades at a forward two-year P/E of 16.15X, which is lower than its median and compares favorably to Stryker's P/E of 24.14X [15] Conclusion - Hologic is positioned favorably with solid fundamentals and a Zacks Rank 2 (Buy), while Stryker holds a Zacks Rank 3 (Hold) and is expected to demonstrate strong operational performance [16] - Both companies are projected to show year-over-year earnings growth, with Hologic's recent performance and valuation providing it an edge in the market [16]

Core Viewpoint - The comparison between Envista (NVST) and Stryker (SYK) indicates that NVST is currently a more attractive option for value investors due to its stronger earnings outlook and favorable valuation metrics [1][2]. Valuation Metrics - Envista has a forward P/E ratio of 19.27, while Stryker's forward P/E is 23.99, suggesting that NVST is more reasonably priced relative to its earnings [4]. - The PEG ratio for NVST is 1.08, indicating a better valuation when considering expected earnings growth, compared to SYK's PEG ratio of 2.30 [4]. - Envista's P/B ratio stands at 1.29, significantly lower than Stryker's P/B ratio of 6.31, further supporting NVST's position as a better value option [5]. Investment Grades - Envista holds a Zacks Rank of 2 (Buy), while Stryker has a Zacks Rank of 3 (Hold), reflecting a more favorable earnings outlook for NVST [2]. - Based on valuation figures, Envista has a Value grade of B, whereas Stryker has a Value grade of C, indicating that NVST is the superior value option at this time [5].

Core Insights - The JPM Health Conference highlighted a shift in focus among major medical device companies from investment narratives to growth execution, emphasizing the importance of mergers and acquisitions, AI integration, and organizational restructuring for future growth [2][4]. Medtronic - Medtronic's leadership emphasized a transition to a "growth execution phase," with a focus on accelerating growth through existing technologies and strategic acquisitions, particularly smaller tuck-in acquisitions [6][7]. - The company plans to launch its Hugo surgical robot system in the U.S. in 2026, targeting soft tissue surgery as a key growth area, and sees significant market potential in cardiac electrophysiology and renal denervation [7][8]. - Medtronic aims for mid-to-high single-digit revenue growth in 2026, driven by advancements in ASC penetration and AI-enabled surgical planning [8]. Boston Scientific - Boston Scientific reported over 10% revenue growth for three consecutive years, driven by core products like PFA and WATCHMAN, with a focus on maintaining high growth in the electrophysiology market [10][11]. - The company aims to enhance the overall adoption of arrhythmia treatments and expand its product offerings, including the FARAPOINT catheter, to new indications [11]. - Boston Scientific's growth strategy includes targeting outpatient surgical centers and advancing its clinical pipeline with new innovations [11]. Stryker - Stryker's CEO highlighted the importance of mergers and acquisitions, particularly in orthopedics and neurology, while focusing on enhancing the Mako robotic platform [12][14]. - The company expects to achieve 7%-9% revenue growth in 2026, with a strong emphasis on outpatient surgical centers as a significant growth driver [14]. Johnson & Johnson - Johnson & Johnson's CEO indicated a return to fundamentals, with a focus on execution and long-term growth, planning to invest approximately $55 billion in new facilities and R&D, particularly in MedTech [15][17]. - The company is preparing for regulatory milestones for its Ottava surgical robot system, with significant contributions expected post-2028 [17][18]. - J&J's strategy includes strategic investments in robotic systems to enhance its outpatient surgical capabilities [18]. Intuitive Surgical - Intuitive Surgical's focus remains on expanding its da Vinci system and integrating AI functionalities to improve surgical efficiency [19][20]. - The company anticipates a competitive landscape in soft tissue robotics but believes its established ecosystem provides a competitive advantage [20]. - Intuitive expects revenue growth of 12%-15% in 2026, driven by increased surgical volumes and international market expansion [20]. Alcon - Alcon is committed to innovation in eye health, focusing on surgical and vision care segments, with a significant emphasis on enhancing operational efficiency [22][23]. - The company aims to launch 10-15 new products over the next two years, maintaining an annual R&D investment of around $1 billion [23]. Abbott - Abbott's strategy emphasizes stable execution, particularly in diabetes management, with plans to expand the FreeStyle Libre system's applications [24]. - The company expects 8%-10% revenue growth in its MedTech business for 2026, focusing on internal innovation and operational efficiency [24]. GE Healthcare - GE Healthcare is shifting its AI capabilities towards standalone software tools, emphasizing the commercialization of AI in imaging [25]. - The company plans to simplify its product offerings to enhance customer experience and reduce internal costs, aiming for organic growth through advanced imaging technologies [25]. Illumina - Illumina's growth strategy focuses on sequencing, multi-omics, and scaling services, with a strong emphasis on partnerships to accelerate drug development [29][30]. - The company aims to maintain a balanced approach between innovation investment and shareholder returns, with a positive outlook for the Chinese market [30]. Edwards Lifesciences - Edwards Lifesciences is focused on structural heart disease, with a commitment to innovation in TAVR and TMTT platforms, expecting 8%-10% sales growth [33][34]. - The company is addressing regulatory challenges while continuing to invest in breakthrough therapies and expanding market access [34]. Jabil - Jabil's CEO discussed the company's transformation and focus on integrating recent acquisitions, with a strategic emphasis on improving sales efficiency in the U.S. market [36][37]. - The company plans to launch new products and leverage AI technology to enhance its offerings in the orthopedic sector [37]. Conclusion - The overall sentiment from the JPM26 conference indicates that major medical device companies are prioritizing alignment of products, organizational structure, and capital utilization to drive growth, rather than focusing solely on new technologies [40].

Group 1 - Stryker Corporation launched its ambulatory surgery center (ASC) business in 2020 to address the demand for migrating certain procedural services [1] - The ASC business is not merely aimed at growth through product sales but is a strategic response to market needs [1] Group 2 - Mr. Arunangshu Das is developing Tranzoro Investments to bridge the gap between US and Indian investors [1] - The focus will be on providing insights into liquid and well-known India-focused ETFs and ADRs for US investors, while covering a wide range of US equities, ETFs, and REITs for Indian investors [1] - Mr. Das emphasizes an income and growth-focused investment strategy [1]

Core Viewpoint - The sentiment in the market can be unpredictable, especially when leading companies in the sector are trading at valuations significantly higher than historical averages, leading to increased volatility [1]. Group 1 - The current trading situation of Stryker indicates that it is valued well above historical norms, which may contribute to market volatility [1].

Group 1 - The sentiment in the market can be unpredictable, especially when sector leaders are trading at valuations significantly above historical norms, leading to increased volatility [1] - Stryker is highlighted as a company that exemplifies this situation, indicating potential concerns regarding its current valuation [1]

Core Viewpoint - Stryker has announced a series of management adjustments that align with its previously disclosed executive appointments, focusing on key business units such as orthopedics, instruments, and surgical technologies, indicating a systematic approach to organizational structure and management division during a new growth phase [2][3][15] Group 1: Executive Appointments - The recent personnel changes are driven by the appointment of Spencer Stiles as President and COO, effective January 1, 2026, which necessitated management transitions in various business segments [3][5] - Stiles will oversee global business operations, overall strategy, and mergers and acquisitions, aiming to sustain growth momentum and enhance operational execution [5] - Following Stiles' promotion, Dylan Crotty has been appointed as Group President of Orthopaedics, bringing 27 years of experience within Stryker and a comprehensive operational background [6][8] Group 2: Instruments Business Leadership - Jeff Gorton has been appointed as President of Instruments, succeeding Crotty, with 18 years of experience at Stryker, including leadership roles in sales, marketing, and management [9][11] - Gorton’s previous role as President and GM of Neurosurgical has equipped him with direct experience in managing complex clinical environments, which is expected to benefit the Instruments division [11] Group 3: Surgical Technologies Management - Kristen Berg has been promoted to Vice President and General Manager of Surgical Technologies, following Gorton’s transition to the Instruments division [12][14] - Berg has been with Stryker since 2011 and has held various management roles, most recently overseeing the integration of Vertos Medical into Stryker's interventional spine business, which positions her well for her new responsibilities [14] Conclusion - The series of management changes at Stryker reflects a strategic organizational rebalancing rather than a directional shift, aiming to maintain stable operations while positioning the company for future growth [15]