Intuitive Surgical (ISRG) is a fundamentally sound company and is a great performer this year. It is also #2 on IBD's list and has been moving through the ranks over the past couple of months. ISRG is only 7.2% below its all-time high and seems to be making an ascending triangle pattern that should help it move higher with some more time. The company boasts 34% pretax margins, which contribute to its EPS growth of 111% last quarter and an estimated 75% for Q4. Sales also increased by 64% last quarter.
Explanation of technicals from my chart:
- The stock formed a tight ascending triangle, which it broke out of on stellar earnings back on the 18th of October.
- The explosive breakout was short-lived, due to bad market conditions that kept pounding the stock lower.
- The stock received good buying support from the 50-day moving average and from the lower boundary of the previous ascending channel.
- As you can see the stock has been climbing out of the correction with little consolidation bases, but last week's tumble sent the stock back to receive support from the 50-day MA / lower channel boundary.
- The MACD has taken a turn recently, as long as the stock price. Both are headed up.
- I see this stock possibly taking a rest sometime here and then making another break for the upper trend line I have drawn that's part of this ascending triangle-type pattern.
- Buy point would be when the stock clears $360.5 on heavy volume and good market conditions.
$334.26999 (12/26/07)
