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Stryker Closes Entellus Buyout, Bolsters Neurotechnology Line
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Stryker Corporation (SYK - Free Report) recently completed the acquisition of Minnesota-based Entellus Medical, for $662 million or $24 per share. The deal was initiated in December 2017 and was subject to Entellus’ stockholders’ approval. According to Stryker, this acquisition is likely to boost the company’s Neurotechnology segment.
Per management, Entellus’ innovative product line within the ENT (Ear, Nose and Throat) segment with a number of minimally invasive procedures will aid Stryker to offer cost-effective solutions to patients.
The acquisition will be dilutive initially to Stryker’s 2018 adjusted earnings per share by approximately 4 cents but will be accretive thereafter.
Neurotech Report forecasts that the global market for neurotechnology products, which was $7.6 billion in 2016, will grow to $12 billion by 2020, marking a 12% compound annual growth rate. Accordingly, we believe the acquisition to be strategic and well timed.
Recent Acquisitions in Focus
In October 2017, Stryker acquired VEXIM SA, a French medical device company offering minimally invasive treatment of vertebral fractures, in a bid to augment its Interventional Spine business.
In September 2017, the company acquired Canada-based NOVADAQ Technologies Inc. for $701 million. NOVADAQ develops fluorescence imaging technology that provides surgeons with visualization of blood flow in vessels and related tissue perfusion in cardiac, cardiovascular, gastrointestinal, plastic, microsurgical and reconstructive procedures.
In April 2017, Stryker acquired controlled substance waste management system maker Cactus, LLC. The acquisition is helpful in improving anti-drug diversion efforts, promote environmentally sustainable disposal practices.
Notably, these acquisitions have bolstered the company’s sales and marketing execution.
Price Performance
Over a year, Stryker has outperformed the industry. The stock returned 23.9% compared with the industry’s gain of 13%.
Bio-Rad has a projected long-term growth rate of 20%. The stock has returned 21.4% in the past six months.
Centene has an anticipated long-term growth rate of 14%. The stock has returned 14.1% in the past six months.
Mednax has an expected long-term growth rate of 10%. The stock has returned 28.9% in the past six months.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Stryker Closes Entellus Buyout, Bolsters Neurotechnology Line
Stryker Corporation (SYK - Free Report) recently completed the acquisition of Minnesota-based Entellus Medical, for $662 million or $24 per share. The deal was initiated in December 2017 and was subject to Entellus’ stockholders’ approval. According to Stryker, this acquisition is likely to boost the company’s Neurotechnology segment.
Per management, Entellus’ innovative product line within the ENT (Ear, Nose and Throat) segment with a number of minimally invasive procedures will aid Stryker to offer cost-effective solutions to patients.
The acquisition will be dilutive initially to Stryker’s 2018 adjusted earnings per share by approximately 4 cents but will be accretive thereafter.
Stryker Corporation Price and Consensus
Stryker Corporation Price and Consensus | Stryker Corporation Quote
Promising Market
Neurotech Report forecasts that the global market for neurotechnology products, which was $7.6 billion in 2016, will grow to $12 billion by 2020, marking a 12% compound annual growth rate. Accordingly, we believe the acquisition to be strategic and well timed.
Recent Acquisitions in Focus
In October 2017, Stryker acquired VEXIM SA, a French medical device company offering minimally invasive treatment of vertebral fractures, in a bid to augment its Interventional Spine business.
In September 2017, the company acquired Canada-based NOVADAQ Technologies Inc. for $701 million. NOVADAQ develops fluorescence imaging technology that provides surgeons with visualization of blood flow in vessels and related tissue perfusion in cardiac, cardiovascular, gastrointestinal, plastic, microsurgical and reconstructive procedures.
In April 2017, Stryker acquired controlled substance waste management system maker Cactus, LLC. The acquisition is helpful in improving anti-drug diversion efforts, promote environmentally sustainable disposal practices.
Notably, these acquisitions have bolstered the company’s sales and marketing execution.
Price Performance
Over a year, Stryker has outperformed the industry. The stock returned 23.9% compared with the industry’s gain of 13%.
Zacks Rank and Key Picks
Stryker carries a Zacks Rank #3 (Hold).
A few better-ranked medical stocks are, Bio-Rad Laboratories Inc. (BIO - Free Report) , Centene Corporation (CNC - Free Report) and Mednax, Inc. (MD - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank Stocks Here.
Bio-Rad has a projected long-term growth rate of 20%. The stock has returned 21.4% in the past six months.
Centene has an anticipated long-term growth rate of 14%. The stock has returned 14.1% in the past six months.
Mednax has an expected long-term growth rate of 10%. The stock has returned 28.9% in the past six months.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>