By Peet Serfontein & Sithembile Bopela
We re-enter a long position with a target price of $371.00 and a stop-loss of $290.00 (reward/risk ratio: 2.9:1).
Stryker Corporation develops develops, manufactures and markets a broad range of medical devices, equipment and digital healthcare solutions used by hospitals, surgical centres and healthcare professionals.
Stryker serves customers worldwide and impacts more than 150 million patients annually. Fundamentally, the company has built a reputation for consistent product innovation, strategic acquisitions and strong relationships with healthcare providers, making it one of the largest and most influential medical device companies in the United States (US).
Technically, the price bouncing off the lower range of an inclining linear regression channel pattern presents an attractive buying opportunity (see the larger insert on the main chart). The recent decline took the price below the regression line and the -2 standard deviation band. If this lower area holds, selling pressure may ease and the price could recover towards the -1 deviation band and then the rising regression line, near $360 to $365.
Recent volume activity also supports a bullish bias for the stock (see the smaller insert on the main chart). Weekly volume has stayed elevated since around April 2026, which points to stronger market participation and liquidity. If this activity accompanies a price recovery, it will help confirm buying interest.
The start of upside price momentum on the Moving Average Convergence Divergence (MACD) histogram, a developing trough in the Coppock Curve and the recent steep upward trajectory of the on-balance volume (OBV) indicator, also support our bullish view.
Share performance
Share information
| Share Code | SYK US |
| Industry | Health Care Equipment & Services |
| Market Capital (USD) | 127.59 billion |
| One-Year Total Return | -6.53% |
| Return Year-to-Date | -3.81% |
| Current Price (USD) | 335.16 |
| 52-Week High (USD) | 389.33 |
| 52-Week Low (USD) | 267.00 |
| Financial Year End | December |
| The price remains below both its 200-day and 200-week simple moving averages (SMAs), but the distance below these averages leaves scope for a mean-reversion rebound towards the 200-day SMA. A sustained move above it would provide stronger evidence of a trend reversal. | |
Consensus expectations (Bloomberg)
| FY25 | FY26E | FY27E | FY28E | |
|---|---|---|---|---|
| Headline Earnings per Share (USD) | 13.63 | 14.84 | 16.29 | 18.02 |
| Growth (%) | 8.86 | 9.80 | 10.63 | |
| Dividend Per Share (USD) | 3.36 | 3.57 | 3.74 | 3.99 |
| Growth (%) | 6.25 | 4.76 | 6.66 | |
| Forward PE (times) | 22.59 | 20.57 | 18.60 | |
| Forward Dividend Yield (%) | 1.07 | 1.12 | 1.9 | |
| The company is set to deliver solid earnings growth momentum over the medium term, supported by healthy underlying demand and a robust pipeline. | ||||
Buy/sell rationale
Technical analysis:
Fundamental view:
Update on previous trade ideas
| Share Name and position | Entry | Current Price | Movement | Comment | Time to exit |
|---|---|---|---|---|---|
| COST - Take profit (Close position) | 924.59 | 1 040.55 | +12.5% | Take profit. The stock reached our profit target and we closed the position. | 17 December 2026 |
| UI - Stop loss (Close position) | 626.48 | 563.81 | -10.0% | Stock has hit a stop-loss. The position was closed in line with the risk-management plan. | 24 February 2027 |
| RL - Buy (Continue to hold) | 391.25 | 394.40 | +0.8% | Favourable AI forecasts and average true range (ATR) target zones remain supportive, while the stock continues to trade above its 200-day SMA. Upward price momentum supports the trade idea. Our profit target is maintained at $450.00, with a trailing stop-loss at $371.00. | 10 March 2027 |
| LOW - Buy (Continue to hold) | 198.53 | 213.38 | +7.5% | The rebound from the lower boundary of the Detrended Price Oscillator (DPO) remains of interest. Just below its 200-day SMA, making this a counter-trend trade idea. Upward price momentum is supportive. Our profit target is maintained at $228.00, with a trailing stop-loss at $207.00. | 3 February 2027 |
| ISRG - Buy (Continue to hold) | 422.06 | 440.75 | +4.4% | Price action near the lower boundary of the rising linear regression channel remains of interest. Testing its 200-day SMA. Upside momentum has stalled, which is a concern. Our profit target is maintained at $506.00, with a trailing stop-loss at $410.00. | 30 December 2026 |
| TXN - Buy (Continue to hold) | 263.42 | 312.49 | +18.6% | The rebound from the 38.2% Fibonacci retracement level remains of interest. Remains above its 200-day SMA. Emerging upside momentum is supportive. Our profit target is maintained at $322.00, with a trailing stop-loss at $298.00. | 17 November 2026 |
| VST - Buy (Continue to hold) | 139.03 | 139.59 | +0.4% | A gross dividend of $0.231 goes ex-dividend on 22 December 2026. Price action near the lower boundary of the rising channel remains of interest. Remains below its 200-day SMA. Weak upside momentum is a concern. Our profit target is maintained at $176.00, with a trailing stop-loss at $132.00. | 18 November 2026 |
This trade idea can be actioned through FNB Global Trader by visiting shares.fnb.co.za.
