Intuitive Surgical Inc. (ISRG): Today's Featured Health Services 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 Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day down 0.6%. By the end of trading, Intuitive Surgical fell $10.64 (-2.1%) to $499.57 on light volume. Throughout the day, 171,260 shares of Intuitive Surgical exchanged hands as compared to its average daily volume of 459,600 shares. The stock ranged in price between $499.14-$507.45 after having opened the day at $506.53 as compared to the previous trading day's close of $510.21. Other companies within the Health Services industry that declined today were: Symmetry Medical ( SMA), down 14.9%, GenMark Diagnostics ( GNMK), down 12.9%, Baxano Surgical ( BAXS), down 9.9% and SunLink Health Systems ( SSY), down 8.4%.
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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 $20.6 billion and is part of the health care sector. The company has a P/E ratio of 30.1, above the S&P 500 P/E ratio of 17.7. Shares are up 4.7% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Intuitive Surgical a buy, 1 analyst rates it a sell, and 2 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 has had lackluster performance in the stock itself.

On the positive front, CardioNet ( BEAT), down 55.5%, Catamaran ( CTRX), down 10.9%, Electromed ( ELMD), down 9.3% and Luminex Corporation ( LMNX), down 6.1% , were all gainers within the health services industry with DaVita HealthCare Partners ( DVA) being today's featured health services industry leader.

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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