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 was unchanged today. By the end of trading, Intuitive Surgical fell $7.23 (-1.3%) to $571.52 on light volume. Throughout the day, 254,405 shares of Intuitive Surgical exchanged hands as compared to its average daily volume of 427,800 shares. The stock ranged in price between $568.40-$577.94 after having opened the day at $576.36 as compared to the previous trading day's close of $578.75. Other companies within the Health Care sector that declined today were: Prima Biomed ( PBMD), down 18%, Novo Nordisk A/S ( NVO), down 14%, Oxygen Biotherapeutics ( OXBT), down 10.3%, and Cormedix ( CRMD), down 9.4%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $22.89 billion and is part of the health services industry. The company has a P/E ratio of 35.7, above the S&P 500 P/E ratio of 17.7. Shares are up 16.3% year to date as of the close of trading on Friday. Currently there are nine analysts that rate Intuitive Surgical a buy, no analysts rate it a sell, and five 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, growth in earnings per share, compelling growth in net income and expanding profit margins. 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, Oramed Pharmaceuticals ( ORMP), up 26.7%, Medical Action Industries ( MDCI), up 25.6%, Celsion Corporation ( CLSN), up 19.4%, and Rexahn Pharmaceuticals ( RNN), up 18.4%, were all gainers within the health care sector with Ariad Pharmaceuticals ( ARIA) 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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

The Method Behind My Investing Madness: Cramer's 'Mad Money' Recap (Wed 9/6/17)

Novartis AG, Sirius XM Radio, Coupa Software: 'Mad Money' Lightning Round

August's Inexplicable Selloffs Are Here: Cramer's 'Mad Money' Recap (8/17/17)

Blue Apron, Philip Morris, Honeywell, Becton Dickinson: 'Mad Money' Lightning Round