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.

Trade-Ideas LLC identified Intuitive Surgical ( ISRG) as a momo momentum 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 $173.2 million.
  • ISRG has a PE ratio of 48.9.
  • ISRG is currently in the upper 30% of its 1-year range.
  • ISRG is in the upper 25% of its 20-day range.
  • ISRG is in the upper 35% of its 5-day range.
  • ISRG is currently trading above yesterday's high.
  • ISRG has experienced a gap between today's open and yesterday's close of 0.6%.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in ISRG with the Ticky from Trade-Ideas. See the FREE profile for ISRG NOW at Trade-Ideas

More details on ISRG:

Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems, and related instruments and accessories in the United States, Europe, and Asia. ISRG has a PE ratio of 48.9. Currently there are 9 analysts that rate Intuitive Surgical a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Intuitive Surgical has been 242,700 shares per day over the past 30 days. Intuitive Surgical has a market cap of $20.0 billion and is part of the health care sector and health services industry. The stock has a beta of 0.22 and a short float of 4% with 3.91 days to cover. Shares are up 2.2% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

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 revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • ISRG's revenue growth has slightly outpaced the industry average of 0.8%. Since the same quarter one year prior, revenues slightly increased by 4.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 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 3.09, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to its closing price of one year ago, ISRG's share price has jumped by 30.92%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • The gross profit margin for INTUITIVE SURGICAL INC is rather high; currently it is at 68.41%. 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 24.27% compares favorably to the industry average.
  • INTUITIVE SURGICAL INC's earnings per share declined by 7.9% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, INTUITIVE SURGICAL INC reported lower earnings of $11.19 versus $16.73 in the prior year. This year, the market expects an improvement in earnings ($17.65 versus $11.19).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

null