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Stryker Stock Declines Despite Completion of care.ai Acquisition
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Stryker Corporation (SYK - Free Report) announced that it has closed the previously-announced agreement to acquire care.ai, a privately held company specializing in artificial intelligence (AI)-assisted virtual care workflows, smart room technology and ambient intelligence solutions. This acquisition is likely to strengthen Stryker's healthcare IT and wireless medical device offerings, underscoring its commitment to delivering innovative solutions that can tackle key challenges in the healthcare industry.
The deal should help SYK in enhancing its position further in the healthcare technology sector. Although SYK stock declined 2.2% following the announcement, the company’s shares have demonstrated a strong uptrend year to date, which is likely to continue for the rest of 2024.
Significance of SYK’s Agreement
Stryker's acquisition of care.ai marks a pivotal step in addressing major challenges in the healthcare industry, such as nursing shortages, staff retention and workplace safety. care.ai's AI-powered platform enhances healthcare delivery by enabling responsive, personalized workflows, allowing caregivers to focus more on patient care.
This move should accelerate Stryker's digital vision, offering customers real-time, intelligent decision-making tools that benefit both caregivers and patients. By integrating care.ai’s AI-driven technology with its Vocera platform, Stryker can create a comprehensive ecosystem to support dynamic clinical workflows and the development of smart healthcare facilities.
The acquisition highlights Stryker’s commitment to addressing its customers' evolving needs while advancing the future of healthcare. It aligns with Stryker's strategy of making tuck-in acquisitions to expand its capabilities.
Earlier, in June, the company agreed to purchase Artelon, a leader in soft tissue repair technology. In December, it announced plans to acquire Serf Sas, a firm specializing in joint replacement technology. Through these strategic moves, Stryker is reinforcing its position as a leader in healthcare innovation.
Industry Prospects
Per a Precedence Research report, the global AI healthcare market size is expected to be worth $26.69 billion in 2024. It is anticipated to reach $613.81 billion by 2034 at a CAGR of 36.8%.
The robust growth will be primarily driven by the increasing adoption of digital technologies to reduce healthcare costs and enhance patient care quality. The rising prevalence of chronic diseases and an aging population are expanding the patient pool, leading to a greater need for efficient data management.
The demand for personalized medicine and the need to maintain digital health records are further propelling the market. The integration of AI and machine learning into healthcare systems should aid in early disease detection and improved care, supported by data analytics, deep learning, natural language processing and predictive analytics.
Price Performance
Shares of Stryker have risen 21.6% year to date compared with 15.5% growth of the industry. The S&P 500 has witnessed a 18.1% rise in the same time frame.
Image Source: Zacks Investment Research
SYK’s Zacks Rank & Key Picks
Currently, Strykercarries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Baxter International Inc. (BAX - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
DVA’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 24.2%. Its shares have risen 56.1% compared with the industry’s 26.3% growth in the past year.
Baxter, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 10%. BAX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.7%.
Baxter has gained 2.9% compared with the industry’s 19.5% growth in the past year.
Boston Scientific, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.6%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.2%.
Boston Scientific’s shares have rallied 57.7% compared with the industry’s 19.5% growth in the past year.
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Stryker Stock Declines Despite Completion of care.ai Acquisition
Stryker Corporation (SYK - Free Report) announced that it has closed the previously-announced agreement to acquire care.ai, a privately held company specializing in artificial intelligence (AI)-assisted virtual care workflows, smart room technology and ambient intelligence solutions. This acquisition is likely to strengthen Stryker's healthcare IT and wireless medical device offerings, underscoring its commitment to delivering innovative solutions that can tackle key challenges in the healthcare industry.
The deal should help SYK in enhancing its position further in the healthcare technology sector. Although SYK stock declined 2.2% following the announcement, the company’s shares have demonstrated a strong uptrend year to date, which is likely to continue for the rest of 2024.
Significance of SYK’s Agreement
Stryker's acquisition of care.ai marks a pivotal step in addressing major challenges in the healthcare industry, such as nursing shortages, staff retention and workplace safety. care.ai's AI-powered platform enhances healthcare delivery by enabling responsive, personalized workflows, allowing caregivers to focus more on patient care.
This move should accelerate Stryker's digital vision, offering customers real-time, intelligent decision-making tools that benefit both caregivers and patients. By integrating care.ai’s AI-driven technology with its Vocera platform, Stryker can create a comprehensive ecosystem to support dynamic clinical workflows and the development of smart healthcare facilities.
The acquisition highlights Stryker’s commitment to addressing its customers' evolving needs while advancing the future of healthcare. It aligns with Stryker's strategy of making tuck-in acquisitions to expand its capabilities.
Stryker Corporation Price
Stryker Corporation price | Stryker Corporation Quote
Earlier, in June, the company agreed to purchase Artelon, a leader in soft tissue repair technology. In December, it announced plans to acquire Serf Sas, a firm specializing in joint replacement technology. Through these strategic moves, Stryker is reinforcing its position as a leader in healthcare innovation.
Industry Prospects
Per a Precedence Research report, the global AI healthcare market size is expected to be worth $26.69 billion in 2024. It is anticipated to reach $613.81 billion by 2034 at a CAGR of 36.8%.
The robust growth will be primarily driven by the increasing adoption of digital technologies to reduce healthcare costs and enhance patient care quality. The rising prevalence of chronic diseases and an aging population are expanding the patient pool, leading to a greater need for efficient data management.
The demand for personalized medicine and the need to maintain digital health records are further propelling the market. The integration of AI and machine learning into healthcare systems should aid in early disease detection and improved care, supported by data analytics, deep learning, natural language processing and predictive analytics.
Price Performance
Shares of Stryker have risen 21.6% year to date compared with 15.5% growth of the industry. The S&P 500 has witnessed a 18.1% rise in the same time frame.
Image Source: Zacks Investment Research
SYK’s Zacks Rank & Key Picks
Currently, Strykercarries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Baxter International Inc. (BAX - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
DaVita, flaunting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 17.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DVA’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 24.2%. Its shares have risen 56.1% compared with the industry’s 26.3% growth in the past year.
Baxter, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 10%. BAX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.7%.
Baxter has gained 2.9% compared with the industry’s 19.5% growth in the past year.
Boston Scientific, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.6%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.2%.
Boston Scientific’s shares have rallied 57.7% compared with the industry’s 19.5% growth in the past year.