4-Star Stocks Poised to Pop: MAKO Surgical

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, medical device company MAKO Surgical (NAS: 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$1.6 billion
IndustryHealth-care equipment
Trailing-12-Month Revenue$58.4 million
Management

Chairman/CEO Maurice Ferre

CFO Fritz LaPorte

Return on Equity (Average, Past 3 Years)(58.4%)
Cash/Debt$59.7 million / $0
Competitors

Smith & Nephew (NYS: SNN)

Stryker (NYS: SYK)

Zimmer Holdings (NYS: ZMH)

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

On CAPS, 96% of the 453 members who have rated MAKO believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars TMFHelical and HealthcareGuy, both of whom are ranked in the top 5% of our community.

Earlier this summer, TMFHelical succinctly summed up the MAKO bull case: "Lots of long term promise here. Early stage innovative medical device maker that should see lots of market growth."

Over the next five years, in fact, MAKO is expected to grow its bottom line at a brisk rate of 20% annually. That's much faster than listed rivals Smith & Nephew (10%), Stryker (11%), and Zimmer (10%).

CAPS member HealthcareGuy elaborates on the bull case:

Hip replacement is a $6B market, where traditional procedures lack the precision of MAKOplasty, and as a result do not last as long and have inferior users experiences. ... MAKO in my estimation is still a multi bagger from here and will most likely not remain public too much longer, as large cap med tech companies have a much larger appetite for M&A than their more talked about big pharma counterparts (who can always hedge themselves by doing sales partnerships instead).

...[F]undamentally I still view this stock as cheap, given the scarcity value of the product and market opportunity, and the fast approaching launch of the new Hip application.

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!

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

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of MAKO, Smith & Nephew, and Stryker. 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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