4-Star Stocks Poised to Pop: Intuitive Surgical

Before you go, we thought you'd like these...
Before you go close icon

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 (NAS: 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
IndustryHealth-care equipment
Trailing-12-Month Revenue$1.65 billion
ManagementCEO 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 Loews 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 (NYS: BSX) (7%), Medtronic (NYS: MDT) (6%), and St. Jude Medical (NYS: 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 trackIntuitive?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 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.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners