Sell: Stryker Corp. (SYK)
from Cabot Benjamin Graham Value Investor
Updated from Investment Digest 762, October 22, 2014
Stryker Corp. (SYK) reached its Minimum Sell Price of 101.66 today, July 24. The company’s second-quarter results were released last night. Sales rose 3% and EPS tripled. Management raised its sales and earnings estimates for third-quarter and fourth-quarter results. Stryker’s current price to earnings ratio is 31.8—almost double the company’s 10-year average P/E of 16.7.
Stryker was first recommended in October 2014 at 80.98. The company was featured in the Cabot Value Model using the Modern Value analysis. SYK has advanced 25.54% in the past nine months compared to a gain of just 11.96% for the Standard & Poor’s 500 Index during the same time period. I recommend selling your SYK shares now.
J. Royden Ward, Chief Analyst, Cabot Benjamin Graham Value Investor, www.cabot.net, 978-745-5532, July 24, 2015