It was reported by TheStreet.com this morning that Wachovia has downgraded Intuitive Surgical (NASDAQ: ISRG) to Market Perform. "Stock looks fully valued, as 2008 estimates may fall short of consensus expectations." As I type away, ISRG is trading around $290 per share down 20% from its 52 week high of $359.59.
When I was considering my Chasing Value: Final list -- 8 stocks for 2008, I had considered ISRG but then posted Chasing Value: Intuitive Surgical on the 2008 watch list instead, thinking that ISRG was not a bargain. I am surprised, then, that Wachovia was not joined by many other calls for patience and a watchful eye regarding putting new money into this stock.
The trailing P/E on ISRG currently stands at 94, while the forward P/E is 66. However, that is based on some speculation about the company's future earnings and does not allow any margin of safety. I am watching ISRG closely because I do want to own more.
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