Today, we highlight some notable technical developments identified by the SIA platform. While these signals may be early, it could be time to begin preparing a plan of action. The SIA Healthcare sector has underperformed in recent years, but the medical devices subsector has shown relatively stronger performance. Advisors may want to closely monitor this area, as renewed interest in medical devices could make it a sector to watch for potential opportunities in 2025. One key report in the SIA platform that tracks the medical device subsector is the SIA US Medical Devices Index Report, which we’ve included in this report. In it, we see several familiar names, especially among large-cap stocks, such as Intuitive Surgical Inc. (ISRG), Boston Scientific Corp. (BSX), and Stryker Corp. (SYK). Stryker is a leading player in medical technology, offering products and services in surgery, neurotechnology, orthopedics, and spine care. With over 52,000 employees globally, the company has grown its market capitalization from $4.26 billion in 1998 to $138 billion, which represents a compound annual growth rate (CAGR) of more than 14%. While the broader SIA Healthcare sector has underperformed the market in recent years, Stryker may have outperformed within both the healthcare sector and the medical device space. The SIA matrix position chart shows that SYK ranks in favored position #17 among 107 names in the broader SIA US Healthcare Sector Index. However, it still ranks in the neutral zone of the broader SIA S&P 500 Index at position #185, which suggests that 184 names may be outperforming it on a relative basis. It’s important to keep this context in mind when evaluating SYK’s performance. On January 6, 2025, Stryker announced an agreement to acquire Inari Medical, Inc. (NARI) for $80 per share in cash, valuing the deal at $4.9 billion. Inari, which is a leader in the venous thromboembolism (VTE) market, may add significant value to Stryker’s portfolio. Inari currently holds position #2 in the attached SIA Medical Devices Index Report.
Taking a closer look at SYK’s technicals, the point-and-figure chart, scaled at 2% over the past 7 years, shows positive movement into the green zone, especially when analyzed against the SIA US Healthcare Index. However, when compared to the broader SIA S&P 500 Index Report, SYK remains in the yellow "neutral" zone. The chart reveals a vertical count of 19-box moves as SYK cycles between periods of consolidation and measured moves. Resistance may currently be at $394.13, with the psychological $400 level in focus. The vertical count from the previous column of X's suggests a potential target of $480.44, while the broader 19-box count could extend the resistance level to $574.17.
Support on the other hand is notable initially at the 3-box reversal level of $349.98 with more at $310.77 and $298.70 (whole number), both of which are near the positive trend line. Currently, SYK’s near-term relative strength score against other asset classes is 6/10. Advisors may want to stay tuned for further developments as we continue to monitor this stock within the context of the broader sector and its competitive positioning within the SIA medical device subsector.
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