4-Star Stocks Poised to Pop: Accuray

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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, medical radiation equipment maker Accuray (Nasdaq: ARAY) has earned a respected four-star ranking.

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

Accuray facts

Headquarters (Founded)

Sunnyvale, Calif. (1990)

Market Cap

$369.7 million

Industry

Health-care equipment

Trailing-12-Month Revenue

$233.6 million

Management

CEO Dr. Euan Thomson (since March 2002)

CFO Derek Bertocci (since January 2009)

Compound Annual Revenue Growth (Over Past 5 years)

64.2%

Cash / Debt

$101.5 million / $0

Other Highly Rated Medical Equipment Stocks

Medtronic (NYSE: MDT)
Intuitive Surgical (Nasdaq: ISRG)

CAPS Members Bullish on ARAY Also Bullish on

General Electric (NYSE: GE)
Vale (NYSE: VALE)

CAPS Members Bearish on ARAY Also Bearish on

Sears Holdings (Nasdaq: SHLD)
Capital One Financial (NYSE: COF)

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

On CAPS, 96% of the 543 members who have rated Accuray believe the stock will outperform the S&P 500 going forward. These bulls include ssbb123 and All-Star rknapton.

Just last week, ssbb123 cut right to the bull case:

Maker of the Cyberknife non-invasive cancer killer. No more chemo and invasive surgery? [S]ounds good to me. [$556] million backlog of orders, 25% contingent due to the poor economy. When the economy picks up it will take off.

In an earlier pitch, rknapton operates even further. Here's an excerpt:

According to their investor fact sheet, there may be an opportunity for 7,136 units worldwide. Even if just a small fraction of this really occurs, [Accuray] will benefit tremendously. ...

[Y]ou’d naturally think that this type of treatment for the end users would be recession proof. Speaking of sensitivity to the economy, one of the main points they tried to get across in their last conference call is that while replacement equipment in hospitals and medical clinics is experiencing a slow-down, the CyberKnife is not replacement equipment, and is indeed a driver of growth for new patients where CyberKnife units are installed.

What do you think about Accuray, 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 is a Motley Fool Rule Breakers recommendation. Sears Holdings is a choice of Inside Value. The Fool owns shares of and options on Medtronic. The Fool's disclosure policy always gets a perfect score.

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Accuray, Inc. CAPS Rating: ****

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