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
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.
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.
Nicholas A. Vardy