The Bull Case for Intuitive Surgical, Inc. (ISRG)

The pullback

From Feb. 19 to March 15, Intuitive Surgical’s stock fell from $582.27 to $459.44, a 21.1% decline. Since then, the stock has rallied to $489.39, but is still well below its highs. I think this is just the beginning of the rally, and it will crack back above the $500 line within a week.

Fourth quarter review

Earnings also support Intuitive Surgical, Inc. (NASDAQ:ISRG)’s run higher. Here are the highlights from their fourth quarter report, released on Jan. 22:

Earnings per share of $4.25 vs. estimates of $4.04

Earnings growth of 13.3% year-over-year

Revenues of $609.30 million vs. estimates of $584.36 million

Revenue growth of 22.7% year-over-year

Going forward

In the fourth quarter report, management projected strong growth for 2013. Currently, earnings are projected to grow 16.6%, revenues are projected to grow 16%-19%, and procedures are expected to grow 20%-23%. These are strong growth rates that analysts expect to continue through 2015.

The Foolish bottom line

I believe the negativity will blow over and send Intuitive Surgical, Inc. (NASDAQ:ISRG) back above $580. This company is a long-term value play at just 20.6 times 2015 earnings. I bought the stock during the decline and plan on adding to the position on any further weakness. If you believe in the company like I do, now is the time to buy.

The article The Bull Case for Intuitive Surgical originally appeared on Fool.com and is written by Joseph Solitro.

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