Stryker Corporation (NYSE: SYK) is a “mispriced” stock that has potential to offer lucrative returns over the long term, says Heather Brilliant. She’s the Chief Executive of Diamon Hill Capital Management.
Stryker can stand the coming recession
Investors are concerned the looming recession will be a meaningful headwind for the Michigan-headquartered company that offers innovative products and services for elective surgeries.
Brilliant, however, is convinced such fears are a bit overblown. This morning on CNBC’s “Squawk Box”, she said:
I think there’s more concern about how Stryker will be impacted by a recession than their business will actually see. If you look at Stryker’s long-term earnings power, we’re very confident in the business over the long run.
The stock down roughly 20% for the year is attractive in terms of valuation as well.
Why else is she bullish on Stryker stock
In July, Stryker Corporation reported weaker-than-expected results for its fiscal second quarter. Still, Brilliant said:
We think the management team is really strong and has done a great job of investing back into the business and following acquisition strategy when it makes sense. That will show through in the business in the long run.
Partnerships with several players in healthcare including hospitals were among other reasons cited for the constructive outlook. Her view is in line with Wall Street that has a consensus “overweight” rating on the medical technology company.
Stryker Corporation currently has a dividend yield of 1.29%. Other mispriced stocks that Brilliant likes include Google and SunOpta.
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