Are These 3 Stocks Survivors? – Johnson & Johnson (JNJ), Stryker Corporation (SYK), Boston Scientific Corporation (BSX)

For all its struggles, as 4Q and 2012 revenues and net income didn’t measure up to 2011 levels, Boston Scientific Corporation (NYSE:BSX) generates about $100 million in free cash flow each month. The company just launched a $1 billion share buyback program, and expects to use future cash either for buying back additional shares or to fund acquisitions.

JNJ’s Woes

It’s not all smooth sailing at JNJ, either. A Johnson & Johnson (NYSE:JNJ) subsidiary was recently forced to recall a knee replacement device after the U.S. Food and Drug Administration said the device could lead to problems such as an infection or even death. Incidentally, the device is a product of the DePuy Synthes Companies of Johnson & Johnson.

Shares of Johnson & Johnson (NYSE:JNJ) are trading near a 52-week high, and the stock has a trailing price-to-earnings ratio of about 20. It’s fair to say that an investment in Johnson & Johnson (NYSE:JNJ) is also an investment in its MD&D business, which could be a catalyst for growth in the coming years. If the company makes any drastic changes, such as to separate any of its businesses, that would be a game changer.

Surviving

All three of the aforementioned stocks that participate in the medical device market are surviving. Boston Scientific is up 25% since last year, and perhaps the new CEO could help this trend to continue. Conversely, there is a lot of short interest in Stryker, according to a recent Forbes article. It’s a volatile group that trades in a market plagued with uncertainty. As long as these companies continue to capture market share from the emerging markets there is a catalyst for growth, which could serve as a reward to shareholders.

The article Are These 3 Stocks Survivors? originally appeared on Fool.com and is written by Gerelyn Terzo.

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