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4-Star Stocks Poised to Pop: Intuitive Surgical

Based on the aggregated intelligence of 170,000-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

$14.5 billion

Industry

Health care equipment

Trailing-12-Month Revenue

$1.47 billion

Management

CEO Dr. Gary Guthart (since 2010)

CFO Marshall Mohr (since 2006)

Return on Equity (Average, Past 3 Years)

19%

Cash/Debt

$1.09 billion / $0

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

On CAPS, 95% of the 4,061 members who have rated Intuitive believe the stock will outperform the S&P 500 going forward. These bulls include All-Star noirblood, who is ranked in the top 1% of our community, and Vermilian.

Just last month, noirblood nicely summed up the Intuitive bull case:

This company is producing revolutionary technology that is being used in more diverse ways every day. The success rate and effectiveness of their robotic surgery cannot be denied, and is proving to be one of the most game-changing medical technologies of our time. Long term looks very good for ISRG!

Over the next five years, in fact, Intuitive is expected to grow its bottom line at a brisk rate of almost 22% annually. That's much faster than other medical-device plays like Boston Scientific (NYSE: BSX  ) (7%), Medtronic (NYSE: MDT  ) (8%), and St. Jude Medical (NYSE: STJ  ) (12%).

CAPS member Vermilian expands on the Intuitive outperform argument:

Tech merges with health care in this stock. This company owns its market and generates good cash flow. This play is about much more than selling million dollar machines to hospitals. It also creates a captive audience for the disposable surgical parts necessary to keep the machines in use. With its good cash position, ISRG can stay out in front of any competitors and make investments in future technology. Like any highflying stock, there is room for considerable down side, but this is a stock to buy and hold long term.

What do you think about Intuitive, 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. Motley Fool newsletter services have recommended buying shares of Intuitive Surgical. The Motley Fool owns shares of Medtronic. 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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Related Tickers

5/25/2012 4:00 PM
ISRG $526.55 Down -4.95 -0.93%
Intuitive Surgical CAPS Rating: ****
STJ $39.43 Up +0.14 +0.36%
St. Jude Medical,… CAPS Rating: ****
MDT $36.88 Down -0.19 -0.51%
Medtronic, Inc. CAPS Rating: *****
BSX $5.87 Down -0.04 -0.68%
Boston Scientific… CAPS Rating: ***

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