Doing a Double Take: Zimmer and Stryker Look Like Twins

by Houghton and Atkeson   01/27/09
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Zimmer Holdings (ZMH) and Stryker Corp. (SYK) are both medical technology companies making joint, spinal and other body replacement parts.

Both are about $41 per share. Both charts have the same shape, which shows the companies got hammered in the fourth quarter of 2008 and are slowly rising off of their November lows.

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Stryker reports earnings tonight and Zimmer reports on Thursday.

Ahead of the earnings, option investors are taking a bullish stance with unusually heavy call buying. Both stocks are trading up sharply today in anticipation of earnings.

It appears that investors believe medical technology may have passed through the financial storm relatively unscathed and the market is about to hear about this through the companies' earnings reports.

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