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Weekly News, Analysis, and Commentary

Power Rankings

Power Rankings: April 14th, 2014

Robin Young’s Entirely Subjective Ordering of Public Orthopedic Companies

This Week: The stock market is correcting. All bull markets have corrections. The typical correction is defined as a decline of 10% or less in a relatively short period of time. This correction started on March 21, when the NASDAQ index was at 4,276 and volume clearly showed sellers dominating trading. A 10% drop from there would take the index to 3,850. Most vulnerable? Growth company stocks.

Rank Last Week Company TTM Op
Margin
30-Day Change
Comment
1
1
Zimmer
27.31%
(5.48%)
Knees, baby. Anecdotally, the Persona knee is one of the most successful new product launches in ortho history.
2
3
Johnson & Johnson
26.58
3.49
Scared investors are liking the JNJ dividend. At 2.70% it’s a warm, dry haven to weather out this correction.
3
2
Stryker
15.71
(2.78)
This year and next will be integration years for SYK’s recent acquisitions. This year, EPS expected to rise 12-16%.
4
4
Medtronic
28.84
(1.05)
All news is about MDT’s cardiovascular business. Where’s spine? New products, new studies, new anything.
5
6
Orthofix
6.75
33.29
The way this stock jumped is testament to how depressed it was while OFIX was fixing its record keeping.
6
7
Alphatec Spine
(5.21)
2.50
Broken stock. Not broken company. In fact, we see signs of continuously strengthening management and company.
7
8
Smith & Nephew
20.25
(4.01)
One little known fact about SNN is its extraordinarily high payout ratio—42% of its earnings are paid out to shareholders.
8
5
Integra LifeSciences
11.77
(8.94)
Get ready for a big earnings jump in Q1. The consensus of analysts is that IART will report $0.57 per share up from $0.39 in last year’s Q1.
9
9
NuVasive
6.30
(12.27)
This is the one year anniversary of Japanese approval for NUVA’s line. Japan will be an important driver of future NUVA sales growth.
10
10
Globus Medical
28.29
(11.65)
Most analysts expect GMED to post an 8% Q1 sales increase and only a penny increase in Q1 earnings. Again, overly conservative expectations.

Top Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 Orthofix OFIX $31.55 $574 33.29%
2 Aurora Spine ASG $4.86 $76 15.71%
3 Johnson & Johnson JNJ $96.87 $273,980 3.49%
4 Alphatec Holdings ATEC $1.44 $140 2.50%
5 CryoLife CRY $9.63 $270 1.16%
6 ArthroCare ARTC $48.50 $1,667 0.73%
7 Tornier N.V. TRNX $18.81 $913 -0.58%
8 Medtronic MDT $59.20 $59,248 -1.05%
9 Stryker SYK $79.36 $30,014 -2.78%
10 Smith & Nephew SNN $73.75 $13,191 -4.01%

Worst Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 MiMedx Group MDXG $5.68 $600 -22.09%
2 TiGenix TIG.BR $0.69 $111 -21.48%
3 Baxano Surgical Inc BAXS $1.05 $50 -14.63%
4 Wright Medical WMGI $28.49 $1,420 -13.27%
5 Bacterin Intl Holdings BONE $0.63 $35 -12.50%
6 NuVasive NUVA $32.88 $1,530 -12.27%
7 Symmetry Medical SMA $9.01 $338 -12.18%
8 Globus Medical GMED $22.97 $2,146 -11.65%
9 Integra LifeSciences IART $43.99 $1,426 -8.94%
10 ConMed CNMD $42.68 $1,161 -6.20%

Lowest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 Zimmer Holdings ZMH $91.50 $15,423 15.93
2 CryoLife CRY $9.63 $270 15.93
3 Medtronic MDT $59.20 $59,248 16.06
4 Johnson & Johnson JNJ $96.87 $273,980 17.64
5 Exactech EXAC $22.63 $309 18.84

Highest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 NuVasive NUVA $32.88 $1,530 87.63
2 Symmetry Medical SMA $9.01 $338 67.87
3 ArthroCare ARTC $48.50 $1,667 32.03
4 Integra LifeSciences IART $43.99 $1,426 27.73
5 Smith & Nephew SNN $73.75 $13,191 23.73

Lowest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 Exactech EXAC $22.63 $309 1.05
2 Globus Medical GMED $22.97 $2,146 1.44
3 Zimmer Holdings ZMH $91.50 $15,423 1.74
4 ConMed CNMD $42.68 $1,161 1.80
5 Stryker SYK $79.36 $30,014 2.17

Highest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 NuVasive NUVA $32.88 $1,530 8.44
2 Symmetry Medical SMA $9.01 $338 5.66
3 CryoLife CRY $9.63 $270 3.98
4 Integra LifeSciences IART $43.99 $1,426 3.26
5 Johnson & Johnson JNJ $96.87 $273,980 2.96

Lowest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 Alphatec Holdings ATEC $1.44 $140 0.68
2 Symmetry Medical SMA $9.01 $338 0.84
3 Bacterin Intl Holdings BONE $0.63 $35 1.04
4 RTI Biologics Inc RTIX $3.80 $215 1.08
5 Exactech EXAC $22.63 $309 1.30

Highest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 TiGenix TIG.BR $0.69 $111 19.41
2 MiMedx Group MDXG $5.68 $600 10.13
3 Globus Medical GMED $22.97 $2,146 4.94
4 Wright Medical WMGI $28.49 $1,420 4.64
5 ArthroCare ARTC $48.50 $1,667 4.41

PSR: Aggregate current market capitalization divided by aggregate sales and the calculation excluded the companies for which sales figures are not available.