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Why there could be more pain ahead for Intuitive Surgical

More pain ahead for Intuitive Surgical?
VIDEO2:5302:53
More pain ahead for Intuitive Surgical?

Is Intuitive Surgical a healthy investment?

Shares of the da Vinci Surgical Systems bounced from positive to negative Thursday after getting an upgrade to "equal weight" from First Analysis. The stock eventually closed negative by a fraction.

But here's the catch, the company has lost a third of its value, or roughly 30 percent from its high of $541.23 due to regulatory concerns.

(Read: )

So, is Thursday's upgrade a sign that the worst for Intuitive Surgical is behind it?

According to Richard Ross of Auerbach Grayson, the charts could see a short-term bounce, but this is a stock that could burn investors long term.

"Data driven stocks with binary outcomes like Intuitive can wreak havoc with even the best laid technical setups," said Ross. "It's a weak hold at best wne eye on the exit."

Ross' main reason for concern, "the stock is up over than 8,000 percent from the lows that we set back in 2003. Any break below critical support could open the floodgates for this stock."

But the fundamentals aren't as clear cut.

"I think that the question is, 'is this still a growth stock?'," said David Seaburg of Cowen and Company, who noted that the market favors growth, especially in health care. "We've seen earnings decelerate for the past several years."

His takeaway, avoid it. "A name like ISRG [Intuitive Surgical] will likely underperform."

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