Trade-Ideas: Intuitive Surgical (ISRG) Is Today's Post-Market Leader Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Intuitive Surgical as such a stock due to the following factors:
- ISRG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $76.3 million.
- ISRG is up 2.1% today from today's close.
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More details on ISRG:
Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems, and related instruments and accessories in the United States, Europe, and Asia. ISRG has a PE ratio of 45.6. Currently there are 10 analysts that rate Intuitive Surgical a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Intuitive Surgical has been 232,500 shares per day over the past 30 days. Intuitive Surgical has a market cap of $18.5 billion and is part of the health care sector and health services industry. Shares are down 5.5% year-to-date as of the close of trading on Friday.
Analysis:
rates Intuitive Surgical as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- ISRG's revenue growth has slightly outpaced the industry average of 0.9%. Since the same quarter one year prior, revenues slightly increased by 4.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- ISRG has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.09, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for INTUITIVE SURGICAL INC is rather high; currently it is at 68.41%. Regardless of ISRG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ISRG's net profit margin of 24.27% compares favorably to the industry average.
- INTUITIVE SURGICAL INC's earnings per share declined by 7.9% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, INTUITIVE SURGICAL INC reported lower earnings of $11.19 versus $16.73 in the prior year. This year, the market expects an improvement in earnings ($17.58 versus $11.19).
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full Intuitive Surgical Ratings Report.
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