Stryker (NYSE: SYK), the medical devices powerhouse, has recently launched its Sync Badge—a hands-free, wearable communication device designed to enhance collaboration among healthcare teams. This new device addresses the ongoing nursing shortage by streamlining workflows and providing seamless access to critical people and information. [] Despite the launch of the Sync Badge, Stryker’s stock did not show any significant appreciation. This muted reaction can be partly attributed to broader market conditions. Investors have grown cautious as markets decline amid rising uncertainties, particularly in response to new tariffs imposed by the Trump administration.
With a market capitalization of $150 billion and shares trading near all-time highs, Stryker has undeniably delivered exceptional long-term value to its shareholders. Nevertheless, investors should consider the company’s vulnerability during economic downturns. Evidence from 2022 demonstrates this risk, when Stryker’s stock plummeted by more than 30% within just a few quarters. This historical pattern raises the question: could Stryker’s current nearly $380 share price potentially retreat below $300 if similar market conditions recur? For those seeking growth with reduced single‐stock volatility, the High-Quality portfolio presents an alternative, having outperformed the S&P 500 and generated returns exceeding 91% since its inception.
Why Is It Relevant Now?
Stryker’s innovative approach makes it appealing, but the prevailing economic uncertainties in the U.S. pose a considerable risk that investors must consider. What risk is that?
Although inflation concerns have lessened, they still persist. The Trump administration’s aggressive policies on tariffs and immigration have reignited worries about a potential resurgence of inflation. These factors could drive the U.S. economy into turbulence or even a recession, as detailed in our macroeconomic analysis.
Adding to these economic challenges is heightened geopolitical instability resulting from the Trump administration’s assertive international policies. The ongoing Ukraine-Russia conflict continues to affect global stability, while trade relationships face growing uncertainty. Even long-standing allies such as Canada and Mexico are being called upon to renegotiate terms, further complicating the risk landscape for investors.
How Resilient Is SYK Stock During a Downturn?
SYK stock has fared worse than the benchmark S&P 500 index during some recent downturns. Concerned about the impact of a market crash on SYK stock? Our dashboard How Low Can Stocks Go During A Market Crash illustrates how key stocks performed during and after the last six market crashes.
Inflation Shock (2022)
- SYK stock fell 31.9% from a high of $277.77 on 4 January 2022 to $189.27 on 18 July 2022, compared to a peak-to-trough decline of 25.4% for the S&P 500
- The stock fully recovered to its pre-Crisis peak by 1 February 2023
- Since then, the stock has risen to a high of $399.90 on 27 January 2025 and currently trades at around $380
COVID-19 Pandemic (2020)
- SYK stock fell 43.8% from a high of $225.10 on 19 February 2020 to $126.50 on 23 March 2020, compared to a peak-to-trough decline of 33.9% for the S&P 500
- The stock fully recovered to its pre-Crisis peak by 12 October 2020
Global Financial Crisis (2008)
- SYK stock fell 59.2% from a high of $76.48 on 26 December 2007 to $31.19 on 9 March 2009, compared to a peak-to-trough decline of 56.8% for the S&P 500
- The stock fully recovered to its pre-Crisis peak by 8 January 2014
Premium Valuation Amid Slowing Growth
Stryker’s current valuation presents an additional challenge, as the stock trades at premium multiples of nearly 7x last year’s sales and approximately 31x last year’s earnings. These metrics surpass the company’s four-year historical averages of under 6x sales and below 28x earnings, despite being partly justified by recent improvements in profitability. Further complicating the investment case, Stryker faces slowing growth prospects, with consensus estimates projecting revenue growth of 9% in 2025 and 8% in 2026—both lower than the 10% increase achieved in 2024.
Given this slowdown in growth and the broader economic uncertainties, ask yourself this question: do you intend to hold on to your Stryker stock now, or will you panic and sell if it begins to drop to $300, $200, or even lower levels? Holding onto a falling stock is never easy. Trefis collaborates with Empirical Asset Management—a Boston area wealth manager—whose asset allocation strategies yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Empirical has integrated the Trefis HQ Portfolio within this asset allocation framework to offer clients better returns with less risk compared to the benchmark index; providing a less turbulent ride, as evidenced by HQ Portfolio performance metrics.
Invest with Trefis
Market Beating Portfolios | Rules-Based Wealth