Shares of Stryker Corp. and Boston Scientific Corp., among other medical-technology companies, witnessed a significant surge on Wednesday, driven by the sustained demand for medical procedures. This positive trend has brightened investors’ outlook on the device makers.
Stryker particularly stood out, with its shares soaring by over 7% during Wednesday’s trading. The surge came after the company reported robust fourth-quarter earnings and sales that surpassed analysts’ expectations. Furthermore, Stryker’s upbeat guidance for the year 2024 results added to the positive sentiment. Discussing the company’s performance, CEO Kevin Lobo emphasized the strength of procedure volumes, stating, “We have exited the year with more backlog than we began the year.”
Meanwhile, Boston Scientific also reported fourth-quarter results that exceeded analysts’ estimates, further fueling the optimistic atmosphere. CEO Michael Mahoney expressed confidence in the continued growth of procedure volumes in 2024. He additionally projected a 9% to 11% growth in adjusted earnings per share for the full year. As a result, Boston Scientific witnessed a 3.7% increase in its stock value during Wednesday afternoon trading.
These promising developments underscore the enduring strength of the medical-technology industry and its potential for future growth. Investors are eagerly following these companies as they navigate the evolving landscape and capitalize on the increasing demand for medical procedures.
The field of medical technology is experiencing a newfound surge in excitement, and this has had a positive impact on the stock prices of various companies. Edwards Lifesciences Corp. (EW) witnessed a remarkable rise of over 7% on Wednesday, while Zimmer Biomet Holdings Inc. (ZBH) recorded a climb of approximately 3%. These two companies are set to release their quarterly results in the upcoming week.
With the resumption of regular healthcare services, individuals who have postponed hip and knee surgeries, as well as other procedures, during the pandemic are now utilizing the healthcare system more frequently. This shift in behavior has been particularly advantageous for medical-device manufacturers. However, health insurers such as Humana (HUM) and UnitedHealth Group Inc. (UNH) have faced challenges due to the increased medical costs associated with this trend. In light of this, Cigna Group (CI) recently announced its decision to divest its Medicare Advantage business.
Additionally, Stryker, another prominent player in the industry, is capitalizing on the aging population’s desire for an active lifestyle and weight loss. As a result of these factors, there is a growing waiting list for orthopedic surgeries and other procedures. Lobo, a spokesperson from Stryker, highlighted these positive market conditions during a recent call on Tuesday.
The Impact of Pickleball on Business
The introduction of pickleball has brought about a myriad of positive outcomes for our business. According to Lobo, this new sport has had a significant impact on our operations.
Lobo emphasized that the elderly population, in particular, has been positively affected by the emergence of pickleball. With a desire to remain active and engaged, this demographic has enthusiastically embraced the sport.
Activity levels play a crucial role in determining the demand for joint replacements and sports medicine procedures. Consequently, the increased interest in pickleball has led to a surge in demand for these services.
The correlation between pickleball and improved physical well-being among the elderly population is evident. At our business, we recognize and celebrate the growth and success that pickleball has brought us. It has truly become a game-changer for our company.