ORTHOPEDICS THIS WEEK VOLUME 13 , ISSUE 5 | FEBRUARY 14 , 2017 2
Orthopedic Power Rankings
Robin Young ’ s Entirely Subjective Ordering of Public Orthopedic Companies
THIS WEEK : Two main observations as we start the week with a record S & P 500 . First , U . S . stocks are expensive compared to the rest of the world so expect more funds to flow into OUS stocks . Second , Trump is promising “ yuge ” tax cuts for businesses and investors . The equity markets are taking him seriously . How seriously ? Institutions are selling treasuries . Risk is reinflation . Watch the Fed .
RANK |
LAST WEEK |
COMPANY |
TTM OP MARGIN |
30-DAY PRICE CHANGE |
COMMENT |
1 1 |
Zimmer Biomet |
23.86 % 2.25 % |
Subchondroplasty is going international . ZBH announced CE mark and OUS roll out . Very innovative , effective knee procedure . |
2 2 Medtronic 20.54 2.30
3 4 Orthofix 9.02 2.55
4 5 Stryker 22.69 ( 0.28 )
MDT will report Q3 on Feb 21 . Spine and InFuse revenues expected to grow at market rates or better .
2nd least expensive orthopedic equity ( after ZBH ), OFIX put up a 4 % sales growth rate for 2016 on strong extremities and stim .
Raised its dividend 12 % to 42.5 cents per share . That ’ s an effective 1.52 % yield . Not as high as JNJ , but decent .
5 3 |
Globus Medical |
29.72 ( 0.15 ) |
6.6 % sales growth rate . That ’ s fine . But operating profit margin is 29.72 % and the return on equity is 15.85 %. Time for a dividend . |
6 8 |
Johnson & Johnson |
27.98 0.44 |
Speaking of dividend . Some analysts are calling JNJ a “ Trump Proof Stock ” since dividend yield is 3.10 %. Rises every year . |
7 9 |
Integra LifeSciences |
15.21 ( 0.74 ) |
Market is still trying to figure out if it likes the Derma Sciences deal or not . IART is clearly making wound care its focus . |
8 7 ConMed 9.90 ( 4.11 )
Wall Street analyst firm Zack ’ s put a Strong Sell rating on ConMed . Normally we view that as a bullish sign . Key is CNMD performance .
9 6 |
Smith & Nephew |
18.40 ( 1.21 ) |
With new competitors emerging to pressure SNN ’ s wound care business , it ’ s time to innovate . Wound care is more than PICO . |
10 10 Exactech 9.20 ( 6.19 )
Choice Spine ’ s purchase of Exactech ’ s spine business looks like a nifty win for both companies .
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