Tuesday, May 14, 2013

Why Intuitive Surgical Looks Timely

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 and see what CAPS investors are saying about the stock right now.

Intuitive facts

Headquarters (founded)

Sunnyvale, Calif. (1995)

Market Cap

$19.5 billion

Industry

Health care equipment

Trailing-12-Month Revenue

$2.3 billion

Management

CEO Gary Guthart (since 2010)
CFO Marshall Mohr (since 2006)

Return on Equity (average, past 3 years)

20.6%

Cash/Debt

$1.4 billion / $0

Competitors

Accuray
Medtronic

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

On CAPS, 95% of the 4,450 members who have rated Intuitive believe the stock will outperform the S&P 500 going forward.   

Just last week, one of those Fools, TMFInnovator, tapped Intuitive's recent earnings miss as an attractive bargain opportunity:   

- Huge switching costs. Surgeons that have already installed the da Vinci systems are familiar with the equipment and are more efficient in the procedures.
-Improved recovery time and less complications for the PATIENT.

I feel that robotic surgery is a better mousetrap. The early adoptors have been promoters and the results have (thus far) looked very good. Could it be a matter of time before robotics become the de facto standard for surgeons?

[Intuitive Surgical] reported earnings that grew 30% year-over-year and is selling at a P/E ratio (TTM) of 26.6.

Recently, some investors have questioned Intuitive Surgical's future. However, Intuitive Surgical expert Karl Thiel believes a visible path to long-term growth persists. Will Intuitive capitalize, or be crushed by unforeseen pitfalls? His report highlights all of the key opportunities and risks facing the company -- and includes a full year of ongoing updates as key new hits -- so be sure to claim your copy by clicking here now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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