Stryker reported second quarter 2014 financial results earlier this month, and Zacks came out with a new research report on the company, according to a Digital Journal report.
Here are five things to know from the Zacks analysis:
1. Stryker missed the Zacks Consensus Estimate for second quarter adjusted earnings by $0.01, although the company did report a 1 percent increase year-over-year. The company's stock opened at $81.94 on July 22 and had a market cap of $31 billion, according to a Yahoo Finance report.
2. According to the financial report, the company expects 5 percent to 6 percent organic revenue growth this year, which is narrower than the range reported earlier — 4.5 percent to 6 percent. The company reported United States sales reaching $1.5 billion, but spine sales in the country were down 6.1 percent over the same period last year.
3. Despite the company's financial report, Zacks is concerned about "strong competition from Johnson & Johnson," as the medtech giant also reported a strong second quarter with orthopedic sales increasing 3.5 percent to $2.4 billion. The company's subsidiary, DePuy Synthes, recently partnered with Tissue Regeneration Systems as well to develop three-dimensional printing technologies.
4. Medtronic's recent acquisition of Covidien and Zimmer's merger with Biomet also pose a threat to Stryker's future as a major medtech company, according to the Zacks report. Stryker hasn't been completely out of the acquisition game; the company has made a few moves recently — the most notable being the MAKO Surgical acquisition last year and the Small Bone Innovations acquisition earlier this month — but no blockbuster moves that will have the same impact as Medtronic-Covidien or Zimmer-Biomet.
5. Zacks reiterated a "neutral" rating for Stryker and set a target price of $86 on the company's stock.
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