Orthopedics This Week | December 5, 2017 | Page 2

ORTHOPEDICS THIS WEEK VOLUME 13 , ISSUE 38 | DECEMBER 5 , 2017 2

Orthopedic Power Rankings

Robin Young ’ s Entirely Subjective Ordering of Public Orthopedic Companies
THIS WEEK : Orthopedic equities may not increase as much as real estate , but the Senate ’ s approval of the tax plan will lift the market significantly this week . All boats will rise . The new buying will show that investors have shifted their focus away from Mueller and the Russia investigation to an imminent overhaul of the U . S . tax system . Investors expect it will pay dividends for years . Equity valuations will rise . Capital will become cheaper still .
RANK
LAST WEEK
COMPANY
TTM OP MARGIN
30-DAY PRICE CHANGE
COMMENT
1 7
Integra LifeSciences
15.60 % 6.21 %
IART , which is among the least expensive equities in the orthopedic universe , found strong buying support so , based on the obtuse , GARP-ish algorythm we use , is # 1 this week .
2 1 Medtronic 21.05 1.20
3 2 ConMed 8.92 0.73
In terms of sheer valuation , MDT remains a notably inexpensive equity . And coming so soon after a strong quarterly report , MDT should remain near the top of most buy lists .
In terms of price , CNMD is second least expensive equity this week in orthopedics . Investors , however , expect CNMD to post up exceptional rates of earnings growth over the coming couple of years .
4 6
Zimmer Biomet
22.28 ( 0.45 )
While knee challenges and supply issues continue to hurt valuation , ZBH is way oversold given its inherent cash generating abilities . Key milestone : new CEO .
5 3 Orthofix 8.01 2.89
One statistic which shows why OFIX has rebounded so resolutely is the ratio of earnings to sales growth . Based on the first 9 months , earnings are growing 3x faster than sales .
6 4 Stryker 22.38 0.93
As we enter the final month of 2017 , it ' s worth noting that SYK will likely report full year sales of around $ 12.3 billion . That is , get ready for it , $ 1 billion more than last year .
7 5
Globus Medical
26.72 20.38
Big jump in valuation for GMED in just the last 30 days . Why ? Is it profits ? Is it sales growth ? Is it the low , low PE ratio ? Nope . It ' s because of Excelsius . The Robot .
8 10 NuVasive 11.57 4.66
Up three spots in just a week . NUVA ' s drop in price has both pulled it onto the Power Rankings AND attracted new buyers . Which is why the stock is up nearly 5 % in one month .
9 8
Johnson & Johnson
27.59 0.00
DePuy Synthes partner in robotics is Google . Specifically Google ' s Verb robotics company . One aspect of the vision , walls and ceilings are part of the robot . Far out .
10 9
Smith & Nephew
19.53 ( 2.87 )
For investors it ' s hard to get a handle on SNN . Is it a London company ? A U . S . firm ? It ' s 5-year average dividend rate of return is 1.73 %. Reflects also the conservative nature of management .
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