Stryker Sees Strength in the U.S. as Vaccinations Take Hold; No Change to Our Fair Value Estimate

Stryker posted first-quarter results that slightly exceeded our expectations on the topline and slightly trailed our projections on the bottom-line. With these two factors largely offsetting each other, we’re holding steady on our fair value estimate. We’re pleased to see that the Wright Medical integration has been coming along faster than anticipated. Stryker’s long record of acquisition and successful integration underscores one of the intangible assets that contributes to the firm’s wide economic moat. As we’ve seen before, Stryker is particularly skilled at retaining the human capital associated with acquisitions—management, engineers, and sales force. Weaving the Wright Medical management with the Stryker teams seems to be smoothing the way, and we expect cross-selling of legacy Wright products to gain steam this year.