This aggressive investing stock has an extraordinary product

Demand for medical devices and supplies will undoubtedly continue to grow as the population ages. Companies in this fast-changing field make a wide range of products, from laboratory instruments to bandages and surgical tools.

Some medical-equipment firms are large and well-established, like C.R. Bard (symbol BCR on New York), one of the stocks we cover in our Wall Street Stock Forecaster newsletter. Bard makes many different medical devices and tools, and has over $2.4 billion U.S. in annual sales. The company also has a long history of paying dividends.

At the other end of the scale are companies like Intuitive Surgical (symbol ISRG on Nasdaq). Intuitive’s share price has been rapidly rising, but its sales of $874.9 million U.S. are only about 36% of Bard’s sales. As well, Intuitive only has one product — the da Vinci computerized surgical system (more on that below) — and does not pay a dividend.

These are some of the reasons why we cover Intuitive in Stock Pickers Digest, our newsletter for aggressive investing. (We’ve updated our buy/sell/hold advice on Intuitive Surgical in the latest issue of Stock Pickers Digest. See below for more.)

Top medical-equipment firms have many advantages over drug stocks

Medical-equipment demand tends to rise, or at least hold steady, regardless of swings in the overall economy. Even better, many of these firms get recurring revenue, mainly from long-time customers.

In contrast, drug companies need to spend heavily to create new drugs, and spend even more to gain regulatory approval. Even then, they only get to profit for a limited time before patents run out and generic products appear. Then too, their research spending may lead to dead ends, rather than new drugs that fill a need and can overcome the regulatory hurdles.

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Moreover, demand for effective drugs can evaporate overnight, long before the patent expires, if more effective drugs come along. And unlike many other manufacturers, drug stocks don’t benefit from brand loyalty.

Intuitive Surgical: An aggressive investing stock with a high-tech edge

Brand loyalty is a key advantage that Intuitive Surgical enjoys. That’s because the company makes a highly specialized product: the “da Vinci,” a computerized surgical system.

Guided by a miniature camera connected to a 3-D monitor, surgeons use the da Vinci to operate by remotely manipulating tiny robotic arms. This is safer and far less invasive than regular surgery, and helps cut a patient’s recovery time and post-operative discomfort. It also lowers scarring and infection risk.

Sales of replacement parts help this aggressive investing stock cut its risk

Intuitive’s sales have been steadily climbing. Plus, it recently launched the da Vinci Si, which has many new features. Intuitive gets about 60% of its revenue from stable and steady sales of replacement parts, training and other services. That income stream cuts its risk.

The recession has prompted many hospitals to cut spending, especially in the U.S. To minimize this risk, this aggressive investing stock has been expanding into international markets. For example, it recently received approval to sell the da Vinci in Japan.

For the full details on Intuitive Surgical and 20 other aggressive investing stocks, be sure to consult the latest Stock Pickers Digest. What’s more you can get this issue absolutely free. Click here to learn how.