5 Largest Orthopedic Companies in the World

1. Stryker Corporation (NYSE:SYK)

2021 Orthopedic Revenue: $8.9 billion

Stryker Corporation (NYSE:SYK) is a Kalamazoo, Michigan-based medical technology company leading the orthopedics field. The company was founded by Dr. Homer Stryker, an orthopedic surgeon, in 1941.

In a note issued to investors on January 9, Shagun Singh at RBC Capital upgraded Stryker Corporation’s (NYSE:SYK) stock from a Sector Perform to an Outperform rating and increased the target price from $240 to $284. The management has shared the initial outlook for FY23 at various investor conferences. Stryker Corporation (NYSE:SYK) is expected to see improvement in leverage but could face headwinds during Q1 2023 due to supply chain-related challenges.

Here’s what Diamond Hill Capital said about Stryker Corporation (NYSE:SYK) in its Q3 2022 investor letter:

“Stryker Corporation (NYSE:SYK) was the only new addition to the portfolio in Q3. It is one of the largest medical device manufacturers with a track record of consistently outgrowing its end markets and competitors. Stryker has a highly performance driven culture with a decentralized operating model that results in strong incentive alignment within the company. We believe the management team has executed well, making small but meaningful decisions that have positioned the firm well among competitors. Management operates with a market share gain mentality and strives to be a category leader in the market they are in. Stryker also benefits from its broad portfolio of surgical tools, small and large cap hospital equipment, waste management products, etc., which enables it to address all the needs of a hospital operating room and be a one-stop shop for health care facilities. This is particularly appealing to hospitals, and it positions Stryker to be the supplier of all operating room equipment versus a single product, thus enabling the company to gain market share.”

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