Medical Devices: Smith & Nephew plc (SNN)
Priced at a trailing P/E of 24 and a forward-looking P/E of 17, it’s not like you can call Smith & Nephew plc (SNN) a screaming value. It’s a reliable growth machine, however, in terms of earnings as well as revenue.
This year shouldn’t be any different for anyone who owns SNN stock. In fact, Smith & Nephew plc might have a much better 2014 (and beyond) than most investors may be expecting.
How so? In November, Smith & Nephew unveiled a biocomposite material for use in arthroscopic surgeries — the Healicoil suture anchor — and just last week the company announced encouraging results from a third-party study of its negative-pressure wound therapy system used on closed surgical incisions. It sounds minor, but that technology could open a big door for Smith & Nephew as well as SNN stock owners.