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4-Star Stocks Poised to Pop: MAKO Surgical

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Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, medical device company MAKO Surgical (Nasdaq: MAKO  ) has earned a respected four-star ranking.

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

MAKO facts

Headquarters (Founded)

Fort Lauderdale, Fla. (2004)

Market Cap

$1.06 billion

Industry

Healthcare equipment

Trailing-12-Month Revenue

$44.3 million

Management

Chairman/CEO Maurice Ferre (since 2004)

CFO Fritz LaPorte (since 2004)

Return on Equity (Average, Past 3 Years)

(56.3%)

Cash/Debt

$73.5 million / $0

Competitors

Smith & Nephew (NYSE: SNN  )

Stryker (NYSE: SYK  )

Zimmer Holdings (NYSE: ZMH  )

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

On CAPS, 93% of the 256 members who have rated MAKO believe the stock will outperform the S&P 500 going forward. These bulls include 707oxford and DocMonsta.

Just last month, 707oxford summed up the growth opportunity for Fools:

Mako Surgical has the patent for robotic knee replacement surgery. If this robotic surgery (which has already proven to work very well) taps even a small portion of the potential market, investors are poised to benefit greatly. I'll take my chances.

Over the next five years, in fact, MAKO is expected to grow its bottom line at a brisk rate of 42% annually. That's much faster than listed rivals Smith & Nephew (10.6%), Stryker (10.9%), and Zimmer (10.1%).

CAPS member DocMonsta elaborates on the bull case:

MAKO's products will revolutionize knee replacement surgery going forward. Eventually, hip surgery as well. We are early in the cycle here and there will be some rough patches to get through. I expect they turn the corner towards real profit in the next 1-2 years, 3-5 years down the road -- look out! It takes time for new surgical technique and equipment to develop a following and be fully implemented, but word is spreading on MAKO and starting to pick up speed. The biggest risk is that someone builds a better mousetrap so to speak. But that isn't happening yet, and would likely also take many years to be developed and earn a reputation.

What do you think about MAKO -- or any other stock, for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!  

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. MAKO is a Motley Fool Rule Breakers recommendation. Smith & Nephew is a Global Gains pick, and Stryker is an Inside Value choice. The Fool owns shares of Zimmer. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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DocumentId: 1478521, ~/Articles/ArticleHandler.aspx, 5/27/2012 11:14:53 AM

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Related Tickers

5/25/2012 4:00 PM
MAKO $23.71 Down -0.28 -1.17%
MAKO Surgical CAPS Rating: *****
ZMH $62.04 Up +0.14 +0.23%
Zimmer Holdings, I… CAPS Rating: ****
SYK $51.85 Up +0.13 +0.25%
Stryker Corp CAPS Rating: *****
SNN $47.26 Up +0.21 +0.45%
Smith & Nephew CAPS Rating: ****

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