St. Jude Medical (STJ) is a leading medical device manufacturer producing consistent double-digit revenue and earnings growth over the past decade. Revenue growth is fueled by numerous product introductions, advancing in technological sophistication, and capturing higher margins.
We look for global demographic trends -- aging populations in developed nations and the rapid urbanization of developing countries -- to fuel long-term growth in this stock. These trends both give rise to growing demand for cardiovascular health care. STJ should remain somewhat insulated from the recent economic fallout.
We move our rating to Buy. Our estimates are being trimmed slightly ahead of the quarter due to the current economic upheavals, but at current prices, we still find the stock to be very attractive. This is supported by the company's consistent financial performance and relatively inelastic demand for their products. Management tends to guide investors with caution, often exceeding their own guidance.
Read the full analyst report on STJ
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