Advanced Micro Devices, Inc. (AMD), Intuitive Surgical, Inc. (ISRG): Friday’s Top Upgrades (and Downgrades)

And yet, all the negative news has had one positive result: It’s made the shares look (almost) cheap enough to own. Intuitive Surgical, Inc. (NASDAQ:ISRG) now sports a P/E ratio of less than 21. That’s not quite cheap enough to make the stock a bargain if it hits consensus estimates of 16% earnings growth over the next five years, of course. The stock’s probably even less of a bargain if growth stalls out below that level — as seems to be becoming more and more likely with each negative announcement. And, of course, free cash flow remains a mystery as Intuitive wasn’t able to put together a cash flow statement in time for yesterday’s earnings release.

All that being said, if you liked Intuitive Surgical, Inc. (NASDAQ:ISRG) a few months ago, when the shares were selling for north of $580 a share, you kind of have to like the stock today at its new and improved price of less than $370.

My advice: Let’s keep a sharp eye out for that 10-Q filing. If the free cash flow number looks better than the earnings number, this low-hanging stock could be ripe for the picking.

The article Friday’s Top Upgrades (and Downgrades) originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Intuitive Surgical and Under Armour.

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