The United States has the largest medical device market in the world, valued at $110 Billion and expected to reach $133 Billion by the end of the year. The industry has over 6,500 companies in the U.S. and sports a Zacks Industry rank of 48 out of 265(top 18%). It’s difficult to sort though all these companies, finding the next big instrument that will save or extend lives isn’t easy. But if investors can get in early, they will be rewarded as hospitals and physicians discover the product, making it industry standard.

Intuitive surgical is a popular name in the field and a very volatile name that makes headlines. Recent positive earnings have brought attention to the company once again and investors need to take a look. In addition, investors need to explore other related companies that might have the same success and Intuitive Surgical.

Below we have four medical companies that have promise to grow and expand their business, possibly becoming the industry standard in the medical world.

Intuitive Surgical (ISRG – Analyst Report) is a Zacks Rank #1(Strong Buy) that designs, manufacturers and markets the da Vinci surgical systems and related instruments. The da Vinci surgical system, which operates in hospitals worldwide, is the primary driver for growth. The system can be best described as a robotic surgeon, controlled by a human operator, which enhances visualization and precision for that operator. Benefits for the patients include less pain, less blood loss, shorter hospital stay and quicker recover.

Intuitive Surgical has a market cap of $21 Billion with a Forward PE of 32. The company has Zacks Style Score in Momentum of “A” and is sitting only a couple percentage points away from its 52-week highs.

Last week’s earnings were impressive, causing the stock to head almost 5% higher before pulling back. The company reported Q4 revenue at $5.89 vs $5.01 expected, with revenue coming in at $677 Million vs the $617 Million expected. Da Vinci systems revenue was up 8% year over year, while service revenue was up 9% over the same period. Worldwide da Vinci procedures were up 15% year over year, showing the popularity and momentum of robotic surgery.

EPS surprises are nothing new for the company, surprising to the upside six out of the last seven quarters. Estimates are also heading higher, with analyst revising numbers higher for 2016 and 2017.

Intuitive has been a very volatile stock that has had issues in the past. One of these issues has been reoccurring lawsuits, which accused the surgical system to be flawed and cause health complications. Lawsuits are troublesome and risks to the stock, but investors are shrugging them off for now as the stock approaches all time highs.

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