Portage, Michigan-based Stryker Corporation (SYK) operates as a medical technology company that develops, manufactures, and markets specialty surgical and medical products. Valued at $149.6 billion by market cap, the company's products include implants, surgical, neurologic, ear, nose and throat and interventional pain equipment, endoscopic, surgical navigation, digital imaging systems, as well as patient handling and emergency medical equipment.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and SYK perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the medical devices industry. Stryker is a leading medical technology company, driving innovation through new product launches, such as Neptune S and System 9, as well as strategic acquisitions, including Cerus Endovascular Limited. These efforts strengthen its market presence in instruments, endoscopy, and neurotechnology. 

Despite its notable strength, SYK slipped 3.6% from its 52-week high of $406.19, achieved on Jan. 28. Over the past three months, SYK stock gained 2.4% underperforming the Dow Jones Industrials Average’s ($DOWI) 7.9% gains during the same time frame.

In the longer term, shares of SYK rose 8.7% on a YTD basis, outperforming DOWI’s YTD gains of 7.1%. However, the stock climbed 9.9% over the past 52 weeks, underperforming DOWI’s 10.8% returns over the last year.

To confirm the bullish trend, SYK has been trading above its 200-day moving average over the past year, with some fluctuations. The stock is trading above its 50-day moving average since late April, experiencing some fluctuations. 

Stryker's underperformance is due to intensifying competition from Zimmer Biomet Holdings, Inc. (ZBH), Johnson & Johnson (JNJ), and Medtronic plc (MDT), particularly in robotic orthopedics, as well as macroeconomic pressures such as inflation, foreign exchange volatility, and wage pressures that are impacting margins. Regulatory hurdles and supply chain bottlenecks also pose challenges, affecting new product launches and profitability.

On Jul. 31, SYK shares closed down by 1.9% after reporting its Q2 results. Its net sales increased 11.1% year-over-year to $6 billion. The company’s adjusted EPS grew 11.4% from the year-ago quarter to $3.13. 

In the competitive arena of medical devices, Boston Scientific Corporation (BSX) has taken the lead over SYK, showing resilience with an 18.1% return on a YTD basis and a 32.7% uptick over the past 52 weeks.

Wall Street analysts are reasonably bullish on SYK’s prospects. The stock has a consensus “Moderate Buy” rating from the 29 analysts covering it, and the mean price target of $437.77 suggests a potential upside of 11.8% from current price levels.