This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

For his top stock pick for 2009, market timing expert Sy Harding looks to medical products company, Zimmer Holdings (NYSE: ZMH).

In his Street Smart Report, the advisor looks at the maker of orthopedic implants, noting, "Currently trading at just 1.6 times books value, 2.3 times sales, and at 9.5 times earnings, the stock is a bargain."

Harding explains, "Zimmer designs and manufactures orthopedic implants, including joint, dental, and spinal replacements, as well as surgical instruments designed to aid in orthopedic surgery and post-operation rehabilitation.

"The company has been growing steadily from both rising sales of its own products, and from acquisitions. Its most recent acquisition was Abbott Spine, acquired from Abbott Labs for $360 million.

"The acquisition was funded from cash on hand and its already existing credit line, worth noting given how the credit crunch is causing problems for many companies. Zimmer's ratio of long-term debt to equity is only about 20% of its industry's average, and it maintains a high level of cash.

As the U.S. baby boom generation ages, demand for medical services is likely to increase, which is good news for St. Jude Medical.

St. Jude Medical (NYSE: STJ) develops and markets devices that treat cardiovascular disease and is also one of the world's leading manufacturers of mechanical heart valves.

St. Jude Medical's core business is its cardiac rhythm management division, which includes pacemakers, implantable cardioverter defibrillators [ICDs] and other equipment to regulate heart rhythm.

In general, analysts believe new product introductions and enhancements to existing products will allow STJ to increase its ICD market share in 2008, with overall company revenues advancing 13-17%. The Reuters F2007/F2008 EPS consensus estimates for STJ are $1.80/$2.09.

The risks? Analysts are keeping an eye on STJ's new product roll-out timetable. Further, negative changes to Medicare reimbursement rates would also hurt STJ's results.

The First Call mean rating for STJ is: Buy [25 firms]. Mean 2008 target: $47.00 [high: $54, low: $40].

Stock Analysis: St Jude Medical is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from STJ's shares. Sell / Stop Loss if you were to purchase shares in this company: $28.

Medical device manufacturer Medtronic Inc. (NYSE: MDT) released 2Q 2008 results last week that inflicted some pain on investors. Total revenues increased by 2%. Sales outside the US increased 12%, but $73 million of that increase was due to currency exchange, not organic growth. Fully one-third of all Medtronic sales now originate outside the US.

CEO Bill Hawkins remains optimistic about "strong growth potential going forward," which is about as much of an admission one will get that the current numbers leave a lot to be desired. The company is focused on growing non-US sales, which is a smart move since Medtronic has already suspended US product shipments in its physio-control division due to unauthorized human bones used in some procedures. More recently, the recall of Fidelis cardioverter defibrillators in the company's largest division caused revenue to plummet by at least $130 million, in addition to $31 million inventory write-off.

On a positive note, the acquisition of Kyphon will begin to contribute to the bottom line in the spinal division sooner than expected, and both the diabetes and ear, nose and throat divisions posted 16% increases in revenue. The company expects final FDA approval for a drug-eluting stent by the end of the calendar year, so look for contributions to the cardiovascular bottom line in 2008.

General Electric (NYSE: GE) will report third quarter EPS on 10/12.

• Alex Brown says: "Given attractive risk/reward verses our $47 TP, we reiterate Buy."
  
• Investors and analysts have frequently called for the sale of NBC Universal because of its declining revenue and GE's 'Six Sigma' discipline not being compatible with Hollywood sensibilities.
  
• GE October option implied volatility of 24 is above its 26-week average of 20 according to Track Data, suggesting larger risk.

Stryker (NYSE: SYK), a medical technology company with a broad range of products in orthopedics and medical specialties, closed $73.14.

• SYK will report EPS on 10/17.
  
• SYK has been frequently subject to unconfirmed buyout chatter.
  
• SYK October option implied volatility of 34 is above its 26-week average of 25 according to Track Data, suggesting larger price fluctuations.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.