Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.

Recs

7

4-Star Stocks Poised to Pop: Intuitive Surgical

Based on the aggregated intelligence of 180,000-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 $17.2 billion
Industry Health-care equipment
Trailing-12-Month Revenue $1.65 billion
Management CEO Gary Guthart (since 2010) CFO Marshall Mohr (since 2006)
Return on Equity (Average, Past 3 Years) 19.1%
Cash/Debt $910.6 million / $0

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 4,132 members who have rated Intuitive believe the stock will outperform the S&P 500 going forward. These bulls include MajorBob04 and All-Star Zaegs, who is ranked in the top 5% of our community.

Just last month, MajorBob04 tapped Intuitive Surgical as a pretty obvious value pick: "Continuing to grow as more and more doctors use the technology that reduces errors and mistakes in surgery. And the extra services for the machines generate additional cash flow."

Over the next five years, in fact, Intuitive is expected to grow its bottom line at a brisk rate of nearly 20% annually. That's much faster than other medical-device plays like Boston Scientific (NYSE: BSX  ) (7%), Medtronic (NYSE: MDT  ) (6%), and St. Jude Medical (NYSE: STJ  ) (11%).

CAPS All-Star Zaegs elaborates on the growth opportunity:

[P]eople have been quick to say that their great historical growth will slow because the economy isn't doing all that well and hospitals can't afford to make such significant investments. While that may have been a fair argument in 2008 or 2009, I don't see this as much of an issue given that their growth has yet to slow significantly during the past few years of very little economic growth. ... My take: As people become more aware of the success of this system, they will start specifically requesting that the procedure be performed with da Vinci. It will be too long before hospitals won't be able to afford NOT to invest in such technology.

Why else do I like it? For starters, Intuitive Surgical has virtually no long-term debt. They're also loaded with cash.

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!

Interested in another easy way to track Intuitive? Add it to your watchlist.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Intuitive. The Fool owns shares of Medtronic and St. Jude. 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.


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 14, 2011, at 1:55 PM, nchimex1 wrote:

    What do you think about intuit surgical (ISRG). The stock has hit new 52 week highs lately with really high PE multiple . I have been watching this stock closely. As physician, I worry that there are upcoming deep cuts in reimbursement from Medicare/Medicaid as congress tries to reduce budget deficits. The commercial insurance companies will likely also follow suit. This will definitely impact on the ability of hospitals and ambulatory surgical centers to invest in very high dollar equipment that Intuit Surgical sells at least in the near term. The crises in Europe will also likely impact sales overseas. The stock has been high flying lately based on projected revenue sales but there might not be a great room for growth in the near term despite he recent blow up quarter. Wat do you think? Is this stock a buy or sell?

    Dr. Nwaukwa

  • Report this Comment On November 15, 2011, at 3:05 PM, ls756 wrote:

    I'd also like a recommendation, only from a different viewpoint. I own ISRG showing a tremendous profit margin around 350%. I've always been a buy and hold investor but I've also been bitten before when I wouldn't take my profits. I'm considering selling an April 2012 $480 covered call currently bid/ask 27.60 - 30 on half my position. If called I'd be selling above $507 which would lock in 400% profit but I'd also have to pay taxes which would be long term cap gains if congress doesn't wipe out that advantage next year. Right now I'm simply fishing for confirmation that this is a good move or if I should just sit tight and watch my investment double again. Thanks for any insight anyone might care to offer.

    LS

Add your comment.

Compare Brokers

Fool Disclosure

DocumentId: 1588779, ~/Articles/ArticleHandler.aspx, 5/27/2012 11:59:01 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 12,454.83 -74.92 -0.60%
S&P 500 1,317.82 -2.86 -0.22%
NASD 2,837.53 -1.85 -0.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

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: ***

Advertisement