Intuitive Surgical Inc. (ISRG): Today's Featured Health Care Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Intuitive Surgical ( ISRG) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Intuitive Surgical fell $9.25 (-1.7%) to $525 on average volume. Throughout the day, 281,351 shares of Intuitive Surgical exchanged hands as compared to its average daily volume of 353,900 shares. The stock ranged in price between $524.47-$534.63 after having opened the day at $532.21 as compared to the previous trading day's close of $534.25. Other companies within the Health Care sector that declined today were: Neptune Technologies & Bioressources ( NEPT), down 24.5%, Aoxing Pharmaceutical Company ( AXN), down 19.2%, EntreMed ( ENMD), down 9.3%, and BG Medicine ( BGMD), down 8.4%.
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Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems for various surgical procedures, including urologic, gynecologic, cardiothoracic, general, and head and neck surgeries. Intuitive Surgical has a market cap of $21.37 billion and is part of the health services industry. The company has a P/E ratio of 34.7, above the S&P 500 P/E ratio of 17.7. Shares are up 15.4% year to date as of the close of trading on Monday. Currently there are seven analysts that rate Intuitive Surgical a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Intuitive Surgical as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, ACADIA Pharmaceuticals ( ACAD), up 136.1%, Peregrine Pharmaceuticals ( PPHM), up 26.8%, Arrhythmia Research Technology ( HRT), up 23.1%, and Zalicus ( ZLCS), up 19.4%, were all gainers within the health care sector with Brookdale Senior Living ( BKD) being today's featured health care sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the health care sector could consider Health Care Select Sector SPDR ( XLV) while those bearish on the health care sector could consider ProShares Ultra Short Health Care ( RXD).

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