3 "Buy Now" Stocks

Over the past two years, the Motley Fool has allowed the public to follow real-time stock picks by some of our top analysts absolutely free of charge. Within the last couple of weeks, three of their picks have popped up on my radar. Read below to find out which companies they picked, and at the end you'll get an offer to access a premium special report on one of the companies.

MAKO Surgical (Nasdaq: MAKO  )
In case you don't already follow the company, MAKO produces the Rio Surgical Robotic system. The machine allows for partial knee and hip replacements that are more aligned with each individual's unique anatomy.

With lots of baby boomers heading into their golden years intent on staying active, MAKO's system seems promising. That, along with growing system sales over the past few years, helped the stock climb more than 500% between 2009 and March of this year. But since then, the company has twice warned that system sales were slowing.

But Dave Meier and John Reeves see a company entering the next stage of growth, not one that's slowing down. As they note, not everyone will adopt a new technology all at once; it takes time.

Source: Technology Adoption Life-Cycle by Infrae.

Our two analysts think that MAKO's next challenge is to jump from "early adopters" to the "early majority." As they noted, MAKO has already hired talent away from Intuitive Surgical (Nasdaq: ISRG  ) -- a robotic health care company that has already made that jump -- to help the company move forward.

Arcos Dorados (NYSE: ARCO  )
For those of you who didn't complete all your homework in high school Spanish, "Arcos Dorados" means "Golden Arches." And if that sounds a lot like McDonald's (NYSE: MCD  ) , it's on purpose: Arcos Dorados has exclusive rights to franchise the McDonald's brand in several Central and South American countries.

Fool analyst Nathan Parmelee, who takes an international focus with his stock picking, thinks the company is trading at a fair value today. Nathan readily acknowledges that there are legitimate signs that the Brazilian economy -- and therefore its appetite for McDonald's -- is weakening. But as he points out, sales in northern and southern Latin America grew by 15% and 25%, respectively, in local currencies.

As far as price goes, Nathan says, "With the shares trading at an operating cash flow multiple of 11 to 12, I'm more than happy to add to my position in this dynamic business."

Power-One (Nasdaq: PWER  )
This company makes it possible for DC electricity produced by solar panels and wind turbines to be converted to AC current that can go on a community's power grid. As many organizations continue the push for safe, clean, and renewable energy sources, you'd think that Power-One might be a hot stock. That isn't the case, though, as the stock is down more than 50% since mid-2010.

But Fool analyst Jim Mueller thinks now might be the time to take a closer look at the company. Power-One blew away estimates in both earnings and revenue last quarter. On top of that, Jim thinks that, though global economies might not be showing the level of activity some would like to see, there will still be strong demand for Power-One's converters. As he pointed out, "[research firm] IMS says demand is growing worldwide despite the slowing economies and reductions in tariffs."

According to Jim, Power-One now has a 14% global market share, good enough for the second largest within their addressable market.

Want the full scoop?
My job with this article is just to give you a taste for what our analysts have been up to. You can click on any of the links above to hear the investing thesis straight from our analysts themselves.

But if you'd like access to a special premium report that covers all the bases and provides exclusive continuing updates as the year goes on, we've got just the thing for you. David Meier has prepared a special premium report covering MAKO Surgical and all you need to know about the company. Get your copy of the report, and the ongoing coverage it will offer, today by clicking here.

Fool contributor Brian Stoffel owns shares of MAKO Surgical and Intuitive Surgical. The Motley Fool owns shares of McDonald's, Power-One, MAKO Surgical, Arcos Dorados Holding, and Intuitive Surgical. Motley Fool newsletter services have recommended buying shares of Intuitive Surgical, MAKO Surgical, and McDonald's. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (5) | Recommend This Article (13)

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 August 21, 2012, at 8:59 PM, Wealthy56 wrote:

    You do not mention that Mako's reporting of its financial picture was found to not be accurate which added to its VERY downward turn last spring. Before this it was trading in the mid-high $30 range. And, yes, that is when I bought.

    Arcos was trading in the high 20's when I bought last summer....there are predictions for it to be valued in the mid-20's, yet you say it is trading where it should be now. Any predictions on where it will be in ten years. Same with ZIP. Yes, I bought last year on the Fool's recommendation. The stock is now worth less than 30% of what I paid. Looks like it did not tak much for the giant car rental firms to pivot and dispose of Zips threat. What's the future for this company. In fairness, I am quite happy with 3D, WPRT and WM. I should have bought Whole Foods last year...stock increase by about 40%.

  • Report this Comment On August 22, 2012, at 4:14 AM, Xrat wrote:

    Early in 2012, in the U.K., medical journals reported metal hip replacements leaving microscopic metal filings in the blood, leading to other medical issues. Have the U.S. had same 'metal filings' issues reported yet?

    Your 'Special Premium Report' states that MAKO use metal implants. Do MAKO have any plans to move to different materials for their inserts?

  • Report this Comment On August 22, 2012, at 11:22 AM, Ronz8In wrote:

    "But since then, [MAKO] has twice warned that system sales were slowing." It would have been more honest to append to that sentence, "and since then the share price dropped from a high of around $45 to today's $15."

  • Report this Comment On August 22, 2012, at 9:21 PM, shovemd wrote:

    The issue of microscopic particle shedding from metal implants has certainly been published in the literature here in the US. There are no good alternatives to Titanium implants. The 1970's enthusiasm for Ceramic hips has waned as tjhe proved to not be as durable as metal. The MAKO system is really about surgical technique and not about prostesis selection. I myself am the happy owner of a metal left hip placed with traditional open surgical techniques in February of 2012.

  • Report this Comment On August 24, 2012, at 8:14 PM, ztnjpv wrote:

    I own PWER. I bought 1200 shares it at $5.78 per share on 8/13/12. I have been happy with the recent price movement but I am not sure what to expect going forward. The stock has a very bullish rating on Fidelity (my online broker) but the projected 5 year growth is only 7%.

    I was actually reading around to see if this stock is seen as having the power to be a strong growth stock over the next 5 years. I am not convinced. I was considering decreasing my position and buying some of Fool's core stocks on stock adviser or rule breakers. Any thoughts?

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ARCO $6.10 Down -0.05 -0.81%
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MAKO Surgical CAPS Rating: ****
PWER.DL.DL $0.00 Down +0.00 +0.00%
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