Intuitive Surgical Inc. (ISRG): Today's Featured Health Services 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 Services industry higher today making it today's featured health services winner. The industry as a whole closed the day up 0.6%. By the end of trading, Intuitive Surgical rose $13.06 (2.3%) to $582.27 on light volume. Throughout the day, 292,061 shares of Intuitive Surgical exchanged hands as compared to its average daily volume of 415,800 shares. The stock ranged in a price between $566.53-$583 after having opened the day at $567.15 as compared to the previous trading day's close of $569.21. Other companies within the Health Services industry that increased today were: Rochester Medical Corporation ( ROCM), up 19%, Five Star Quality Care Incorporated ( FVE), up 14.5%, Unilife Corporation ( UNIS), up 12.3%, and Skilled Healthcare Group ( SKH), up 11%.
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Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems, and related instruments and accessories. Intuitive Surgical has a market cap of $22.84 billion and is part of the health care sector. The company has a P/E ratio of 35.6, above the S&P 500 P/E ratio of 17.7. Shares are up 16.1% 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 negative front, USMD Holdings ( USMD), down 12.6%, NeuroMetrix ( NUROD), down 12.4%, NeuroMetrix ( NURO), down 12.4%, and CombiMatrix Corporation ( CBMX), down 10.6%, were all laggards within the health services industry with UnitedHealth Group ( UNH) being today's health services industry laggard.

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

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