Why Stryker Stock Popped Today

Core Viewpoint - Stryker's stock is experiencing a positive movement following an upgrade by Raymond James analyst Jayson Bedford, who considers it one of the highest quality stocks in the large-cap MedTech sector and predicts a target price of $418 within a year [1][3]. Group 1: Analyst Upgrade and Stock Performance - Raymond James analyst Jayson Bedford upgraded Stryker stock to "outperform" and noted that the company has achieved over 10% organic revenue growth for five consecutive years [3][7]. - Despite the strong growth, Stryker's stock underperformed last year due to a compression in the NTM P/E multiple by approximately 3 turns, dropping from over 26 times forward earnings to around 23 times [3]. Group 2: Market Position and Valuation Concerns - Bedford argues that the current reduction in the earnings multiple is unjustified, citing Stryker's market share gains and double-digit growth profile as indicators of potential upside [3]. - In contrast, some analysts express concerns about Stryker's valuation, noting that it trades at 46 times trailing earnings, which they consider excessive for a company expected to grow earnings at 10% or better over the next five years [4][5].