Jim Cramer is Watching These 8 Stocks

2. Stryker Corporation (NYSE:SYK)

Number of Hedge Fund Holders: 55

Cramer expressed approval of Stryker Corporation’s (NYSE:SYK) decision to acquire Inari Medical, Inc. as he highlighted that the two companies’ portfolios will complement each other.

“And look, the Hulu deal was just the appetizer because from Monday night through Tuesday, we got several multi-billion dollar M&A transactions. Let’s take them in chronological order, starting with Stryker, that’s that medical device maker spending $4.9 billion in cash to buy Inari Medical, which is mainly focused on treating patients with venous thromboembolism or VTE. It’s a condition that impacts up to 900,000 people in the United States every year.

Stryker says that Inari product portfolio is highly complementary to their neurovascular business. I’ve checked it out. I agree. I like this deal… Looking at the transactions we’ve seen just this week, while some of them likely would’ve been challenged by Biden’s ideologically driven regulators, most of them seem pretty justifiable. All of them make great business sense…  Stryker doesn’t currently do much in the very specialized venous thromboembolism space where Inari Medical operates, huge for them.”

Stryker (NYSE:SYK) is a medical technology company offering a range of products including implants for joint replacements, spinal systems, surgical equipment, patient safety technologies, and neurosurgical devices, among other medical devices. On January 6, the company announced a definitive agreement to acquire all outstanding shares of Inari Medical, Inc. in a transaction valued at approximately $4.9 billion. Founded in 2011, Inari Medical holds a strong position in the peripheral vascular market, particularly in the growing field of venous thromboembolism (VTE), which will complement Stryker’s existing portfolio.

The acquisition is expected to close by the end of the first quarter of 2025. In addition to the Inari acquisition, the company has made several other strategic moves. In the third quarter of 2024, it acquired Care.ai, advancing its healthcare IT and wirelessly connected solutions. It also purchased NICO Corporation, which facilitates minimally invasive procedures for tumor and intracerebral hemorrhage treatments. Furthermore, the acquisition of Vertos Medical allowed the company to expand its pain management portfolio with minimally invasive solutions for treating chronic lower back pain caused by spinal stenosis.

Based on its performance so far, Stryker (NYSE:SYK) forecasts a solid finish to 2024, with projected organic net sales growth between 9.5% and 10.0%. The company also expects adjusted net earnings per diluted share to fall between $12.00 and $12.10 for the full year.