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 $19.44 (-3.8%) to $489.89 on heavy volume. Throughout the day, 1.6 million shares of Intuitive Surgical exchanged hands as compared to its average daily volume of 508,400 shares. The stock ranged in price between $483.38-$517.44 after having opened the day at $514.23 as compared to the previous trading day's close of $509.33. Other companies within the Health Care sector that declined today were: Arrowhead Research Corporation ( ARWR), down 9.9%, Delcath Systems ( DCTH), down 8.3%, Strategic Diagnostics ( SDIX), down 8.3%, and Durata Therapeutics ( DRTX), down 8.1%.
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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 $20.71 billion and is part of the health services industry. The company has a P/E ratio of 32.1, above the S&P 500 P/E ratio of 17.7. Shares are up 4.6% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Intuitive Surgical a buy, no analysts rate it a sell, and four 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, ARCA biopharma ( ABIO), up 38.7%, Dynatronics Corporation ( DYNT), up 18.7%, Sinovac Biotech ( SVA), up 17.9%, and Kips Bay Medical ( KIPS), up 16%, were all gainers within the health care sector with AstraZeneca ( AZN) 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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