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 down 0.2%. By the end of trading, Intuitive Surgical fell $9.08 (-1.8%) to $486.79 on average volume. Throughout the day, 730,836 shares of Intuitive Surgical exchanged hands as compared to its average daily volume of 500,000 shares. The stock ranged in price between $486.34-$512 after having opened the day at $510 as compared to the previous trading day's close of $495.87. Other companies within the Health Care sector that declined today were: Idera Pharmaceuticals ( IDRA), down 10.2%, Pharmacyclics Incorporated ( PCYC), down 8.4%, ARCA biopharma ( ABIO), down 7.8%, and ADVENTRX Pharmaceuticals ( ANX), down 7.8%.
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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 $19.61 billion and is part of the health services industry. The company has a P/E ratio of 30.4, above the S&P 500 P/E ratio of 17.7. Shares are down 1.6% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate Intuitive Surgical a buy, no analysts rate it a sell, and three 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 has had lackluster performance in the stock itself.

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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