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

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 higher today making it today's featured health care winner. The sector as a whole closed the day up 0.7%. By the end of trading, Intuitive Surgical rose $17.89 (3.4%) to $551 on heavy volume. Throughout the day, 683,276 shares of Intuitive Surgical exchanged hands as compared to its average daily volume of 355,600 shares. The stock ranged in a price between $535.09-$552.98 after having opened the day at $535.39 as compared to the previous trading day's close of $533.11. Other companies within the Health Care sector that increased today were: Genvec ( GNVC), up 29.8%, Cormedix ( CRMD), up 23.5%, Arrhythmia Research Technology ( HRT), up 15.7%, and Vivus ( VVUS), up 13.9%.
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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 $21.39 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 15.1% year to date as of the close of trading on Friday. Currently there are six 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 negative front, Neptune Technologies & Bioressources ( NEPT), down 22.8%, Tranzyme ( TZYM), down 19.1%, Opexa Therapeutics ( OPXA), down 18.6%, and Alimera ( ALIM), down 12.6%, were all laggards within the health care sector with Perrigo Company ( PRGO) being today's health care sector laggard.

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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