Watch For Today's Momo Momentum Stock: Intuitive Surgical (ISRG)
Trade-Ideas LLC identified
(
) as a momo momentum 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 $186.8 million.
- ISRG has a PE ratio of 38.
- ISRG is currently in the upper 30% of its 1-year range.
- ISRG is in the upper 25% of its 20-day range.
- ISRG is in the upper 35% of its 5-day range.
- ISRG is currently trading above yesterday's high.
- ISRG has experienced a gap between today's open and yesterday's close of 0.7%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ISRG with the Ticky from Trade-Ideas. See the FREE profile for ISRG NOW at Trade-Ideas
More details on ISRG:
Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems, and related instruments and accessories. ISRG has a PE ratio of 38. Currently there are 11 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 354,600 shares per day over the past 30 days. Intuitive Surgical has a market cap of $24.1 billion and is part of the health care sector and health services industry. Shares are up 15.1% year-to-date as of the close of trading on Monday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates Intuitive Surgical as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- INTUITIVE SURGICAL INC has improved earnings per share by 37.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, INTUITIVE SURGICAL INC increased its bottom line by earning $15.52 versus $11.19 in the prior year. This year, the market expects an improvement in earnings ($20.71 versus $15.52).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 40.6% when compared to the same quarter one year prior, rising from $97.00 million to $136.40 million.
- ISRG's revenue growth trails the industry average of 31.0%. Since the same quarter one year prior, revenues rose by 11.7%. Growth in the company's revenue appears to have helped boost the 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 4.76, which clearly demonstrates the ability to cover short-term cash needs.
- You can view the full Intuitive Surgical Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
