Trade-Ideas: Intuitive Surgical (ISRG) Is Today's Pre-Market Leader Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Intuitive Surgical ( ISRG) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Intuitive Surgical as such a stock due to the following factors:

  • ISRG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $189.0 million.
  • ISRG traded 10,991 shares today in the pre-market hours as of 8:54 AM.
  • ISRG is up 8.2% today from Friday's close.

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More details on ISRG:

Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems, and related instruments and accessories. ISRG has a PE ratio of 25.6. Currently there are 7 analysts that rate Intuitive Surgical a buy, 4 analysts rate it a sell, and 6 rate it a hold.

The average volume for Intuitive Surgical has been 502,200 shares per day over the past 30 days. Intuitive Surgical has a market cap of $16.4 billion and is part of the health care sector and health services industry. The stock has a beta of 0.61 and a short float of 5.6% with 5.18 days to cover. Shares are up 13.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Intuitive Surgical as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • ISRG has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.48, which clearly demonstrates the ability to cover short-term cash needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, INTUITIVE SURGICAL INC's return on equity exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has slightly increased to $229.10 million or 5.47% when compared to the same quarter last year. In addition, INTUITIVE SURGICAL INC has also modestly surpassed the industry average cash flow growth rate of 2.80%.
  • The gross profit margin for INTUITIVE SURGICAL INC is currently very high, coming in at 72.21%. Regardless of ISRG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ISRG's net profit margin of 28.84% significantly outperformed against the industry.
  • INTUITIVE SURGICAL INC reported flat earnings per share in the most recent quarter. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, INTUITIVE SURGICAL INC increased its bottom line by earning $16.73 versus $15.96 in the prior year. For the next year, the market is expecting a contraction of 10.6% in earnings ($14.95 versus $16.73).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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