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                          Front View of Stock Selection Guide

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Stock Selection Guide

The most widely used aid to good investment judgment

Company:

Stryker Corp, Q4FY2007c

Date:

03/16/08

Prepared By:

 CRMIC

Data taken from:

Value Line

Where traded:

NYSE

Major product/service:

 Medical Sup

Capitalization:

Outstanding Amounts

Reference:

 


Click on a number to jump to the definitions of "Benchmarks for Interpreting an SSG on Stryker Corporation"

1 VISUAL ANALYSIS of Sales, Earnings and Price

Back View of Stock Selection Chart

 

Enlarged Individual Sections on Back View of Stock Selection Guide

2 EVALUATING MANAGEMENT

Company: Stryker Corp, Q4FY2007c (SYK4C)

 

03/16/08

 


 

3 PRICE-EARNINGS HISTORY as an indicator of the future
This shows how stock prices have fluctuated with earnings and dividends. It is a building block for
translating earnings into future stock prices.

PRESENT PRICE: 60.780

HIGH THIS YEAR: 76.890

LOW THIS YEAR: 54.900

 

4 EVALUATING RISK and REWARD over the next 5 years                                 PEG=165              
Assuming one recession and one business boom every 5 years, calculations are made of
how high and how low the stock might sell. The upside-down ratio is key to evaluating
risk and reward.

5 5-YEAR POTENTIAL
This combines price appreciation with dividend yield to get an estimate of total return.
It provides a standard for comparing income and growth stocks.


Benchmarks for Interpreting an SSG on Stryker, Inc.

The statements on this form are suggested benchmarks to use in interpreting an SSG for
Stryker. The numbers (e.g., number 1, number 2...) correspond with those on
the Stryker SSG.

Section 1
Capitalization

  1. Percent Insiders: The higher the percentage, the better.
  2. Percent Institution: Investors prefer no more than 40-50%.

Visual Analysis

  1. Percentage Change for Sales and Earnings per Share: Investors like to see at least a 10% change in both Sales and Earnings from the year ago quarter.

    Estimated Future Sales Growth and Estimated Future Earnings Per Share Growth
  2. Investors like to see 15% growth. May vary depending on size of company.

    Back to 1


    Section 2
    Evaluating Management
  3. 2A—Percent Pre-tax Profit on Sales: Investors like to see this growing at 10-15% or better.
    Check the industry's average (www.reuters.com) to know if this is reasonable.
  4. 2B—Percent Earned on Equity: Investors like to see this growing at 15-20% or better.
    Check the industry's average (www.reuters.com) to know if this is reasonable.

    Back to 2


    Section 3
    Price Earnings History
  5. #8 Average Price Earnings Ratio: Want to buy at or below the 5 year average P/E ratio.

    Back to 3


    Section 4
    Evaluating Risk and Reward over the next 5 years
  6. D—Upside Downside Ratio: Need a 3 to 1 ratio to double money in 5 years.
  7. E—Price Target: Need 100% appreciation to double money in 5 years.
  8. Relative Value: Look for a relative value between 80 and 110%.

    Back to 4


    Section 5
    Five—Year Potential
  9. Estimated Average Annual Return over Next Five Years: Need 20% to double money in 5
    years.
  10. Total Return: Need a Projected Annual Return of 15% to double money in five years.

    Back to 5