Medical device companies are hot.
This week’s Momentum Trader Alert play is Kalamazoo, Michigan-based Stryker Corporation (SYK), yet another medical technologies company.
A member of the Fortune 500, Stryker’s products include implants used in joint replacement and trauma surgeries, as well as other medical device products used in a variety of medical specialties. Stryker products are sold in over 100 countries throughout the world.
Stryker Corporation (SYK) versus the S&P 500 over three months.
Momentum Trader Alert Analysis
Recommendation
Buy Stryker Corporation (SYK) at market today, and place your stop at $121.00.
If you want to play the options, I recommend the SYK April $130 calls (SYK170421C00130000), which last traded at $2.57 and expire on April 21.
Portfolio Update
U.S. Silica Holdings (SLCA) dropped sharply last week as the company was unable to turn a profit quite yet despite soaring revenues.
Having looked closely at the fundamentals of the company, I believe the sell-off was an overreaction and I expect this stock to bounce back in the coming weeks.
As always, keep an eye on the stop price in case the stock continues to move down.
Sincerely,
Nicholas A. Vardy
