4-Star Stocks Poised to Pop: Intuitive Surgical

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, surgical robot specialist Intuitive Surgical (Nasdaq: ISRG) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Intuitive's business and see what CAPS investors are saying about the stock right now.

Intuitive facts

Headquarters (Founded)

Sunnyvale, Calif. (1995)

Market Cap

$9.4 billion

Industry

Health-care equipment

Trailing-12-Month Revenue

$960.7 million

Management

CEO Lonnie Smith (since 1997)
CFO Marshall Mohr (since 2006)

Compound Annual Revenue and Net Income Growth (Over Past 3 Years)

42.5% and 28.1%, respectively

Cash/Debt

$512.8 million / $0

Other Highly Rated Health-Care Equipment Stocks

Medtronic (NYSE: MDT)
St.Jude Medical (NYSE: STJ)

CAPS Members Bullish on ISRG Also Bullish on

Johnson & Johnson (NYSE: JNJ)
Apple (Nasdaq: AAPL)

CAPS Members Bearish on ISRG Also Bearish on

Research In Motion (Nasdaq: RIMM)
Baidu (Nasdaq: BIDU)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 3,741 members who have rated Intuitive believe the stock will outperform the S&P 500 going forward. These bulls include gweech and Twg345.

Late last month, gweech touched briefly on the company's most recent quarter:

[P]atent lock, cash pigs, absolutely required health technology, revolutionary procedures. Crushed estimates. This stock defines the Fool philosophy.

In an earlier pitch, Twg345 tapped Intuitive's "razors and blades" business model as a rather sharp decision:

[Intuitive] is a well run company with a huge market share in its respective industry. [Intuitive's] Da Vinci System is an absolute one of a kind product that further distinguishes [the company] from other health care companies. This company also produces razor blades. ... I wouldn't be surprised to see this stock make drastic gains in the near future. Also, it will be very interesting to see how this stock is affected by the Obama administration as it begins to make important decisions with health care.

What do you think about Intuitive Surgical, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Intuitive Surgical and Baidu are Motley Fool Rule Breakers picks, Johnson & Johnson is an Income Investor choice, and Apple is a selection of Stock Advisor. The Fool owns shares of Medtronic. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 03, 2009, at 8:22 PM, acbill wrote:

    I like ISRG in fact I like any stock with a monopoly in it's spcific industry but one thing really bothers me. After doing a little homework I discovered that insider transactions over the past 6 months have been 100% sales of stock. No insiders have bought a single share and they have sold at much cheaper prices than where the share price is right now. What's up with that! Doesn't show much confidence by the companys officers that they think the share price is going higher.

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