8 Most Promising Robotics Stocks According to Hedge Funds

4. Stryker Corporation (NYSE:SYK)

Number of Hedge Fund Holders: 53

Stryker Corporation (NYSE:SYK) is a leading medical technology firm that offers products and services in Medical and Surgical, Neurotechnology, Orthopedics, and Spine. The company has its robotics arm, Mako, that develops spinal and knee devices, among other products. Stryker also specializes in soft tissue fixation products and delivering AI-assisted virtual care workflows. Apart from other wide range of medical products, the company also assists surgeons in visualizing and reviewing patients via Apple Vision Pro.

SYK has a three-year EPS compound annual growth rate (CAGR) of 18.01% and revenue CAGR of 9.60%, respectively. With that SYK seems promising, in addition to considering its portfolio and penetration in the medical market. The company continues to experience the adoption of robotic-assisted surgery. Stryker Corporation has initiated early cases with both its Spine Guidance 5 software featuring Copilot and Mako Spine Robot. In addition to its spine operations, the company’s U.S. knee business during Q3 increased 8.4% organically, reflecting its market-leading position in robotic-assisted knee procedures. Further, Stryker’s U.S. Hip business experienced 10.9% organic growth in Q3 driven by the continued success of the firm’s insignia, hip stem, and momentum from its Mako robotic hip platform.

Stryker Corporation (NYSE:SYK) plans to expand its portfolio of wirelessly connected medical devices and improve its growing healthcare IT offering with its new acquisitions. In that regard, SYK has improved its 2024 full-year guidance, increasing its organic sales growth expectations from 9.5% to 10%, as of Q3.

Stryker Corporation (NYSE:SYK) was recognized by Baron Funds in its investor letter for the first quarter of 2024. Here is what the fund said:

“We also added to Surgery Partners, Inc., a leading operator of ambulatory surgery centers, and Stryker Corporation (NYSE:SYK), a large diversified medical device company. We think Surgery Partners should benefit from a multi-year trend of surgical procedures migrating from inpatient hospitals to outpatient centers. Stryker reported strong fourth quarter financial results, highlighted by 11.5% organic revenue growth, and management provided solid guidance for 2024, calling for 7.5% to 9.0% organic revenue growth and double-digit EPS growth.”

Canaccord raised the price target on SYK to $400 from $360 and kept a Buy rating on the shares following impressive Q3 results.