General Electric Company (GE), Stryker Corporation (SYK): Why Aren’t Investors Worried?

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Stryker ICU Medical Zimmer Holdings General Electric
Trailing P/E 23.81 25.66 19.24 18.40
5-year PEG 2.08 2.34 1.59 1.36

Source: Yahoo Finance, 7/23/2013

A stock that is trading at 5-year highs with a PEG of 2.08 and a trailing P/E of 23.8 – a premium compared to an industry average PEG of 1.47 and P/E of 23.3 – could fall fast if the market stumbles. Therefore, investors might be better off waiting for a pullback with these stocks, or bank on a more reliable, diversified company like General Electric instead.

Leo Sun has no position in any stocks mentioned. The Motley Fool owns shares of General Electric Company and Zimmer Holdings.

The article Why Aren’t Investors Worried About This Medical Devices Maker? originally appeared on Fool.com and is written by Leo Sun.

Leo is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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