2 Stocks I Can't Wait to Buy During the Next Market Correction
Key Points
Intuitive Surgical's lead in the robot-assisted surgery niche appears unassailable.
Sportradar Group is the leading data provider in a rapidly growing market for sports-related information.
Investors never know when the next market correction -- a drop of from 10% to 20% in an index -- is coming, but we know that it will eventually happen. And because that's true, it makes sense to make a list of the stocks you'd like to buy if they dip during a correction.
The next big market correction could happen next week, next month, or next year. Investors who scoop up shares of Intuitive Surgical (NASDAQ: ISRG) and Sports Radar (NASDAQ: SRAD) if they dip during the inevitable correction could come out miles ahead over the long run. Read on to see why these two belong on growth stock investors' watch lists.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
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Intuitive Surgical
Since the turn of the century, Intuitive Surgical has been leading the trend toward minimally invasive surgical procedures performed with the aid of its da Vinci robots. Medtronic and Johnson & Johnson are growing their footprint in this lucrative space, but they generally develop their devices to perform procedures that da Vinci robots haven't already dominated.
In 2024, Intuitive Surgical launched an updated system called da Vinci 5, which could significantly reduce procedure times and complications. That combination makes spending over $1 million on a da Vinci system and training surgeons to use it a worthwhile investment for hospitals. During the 12 months that ended this March, the number of da Vinci systems installed worldwide grew 15% to 10,189.
All of those da Vinci machines use instruments and accessories that need to be replaced between procedures. First-quarter instrument and accessory sales rose 18% year over year to $1.4 billion. Since Intuitive Surgical is the only company hospitals can buy these instruments from, investors can reasonably expect continued growth at this pace.
Shares of Intuitive Surgical have been trading for more than 75 times trailing earnings, and valuations this high aren't unusual for this magnificent growth stock. During the bear market of 2022, though, its valuation sank below 50 times trailing earnings. Folks who keep this one on a watch list and jump on it during the next downturn that takes it down could reap enormous gains over the long run.
Sportradar Group
Keeping box scores was my favorite part about watching ball games as a kid. So naturally I'm fascinated with Sportradar Group, a company that takes recording and sharing sports statistics to a new level.
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Why Intuitive Surgical Stock Plunged Today
Deutsche Bank downgraded Intuitive Surgical stock to sell this morning. The banker worries third-party remanufacturers will cut into Intuitive's surgical tools business. Deutsche's new price target sees 16% downside to the stock. 10 stocks we like better than Intuitive Surgical › Intuitive Surgical (NASDAQ: ISRG), the maker of surgical robots and tools for robotic surgery, is taking it on the chin in afternoon trading Monday. Through 2:22 p.m. ET, Intuitive stock has lost 5.5% of its value. You can blame Deutsche Bank for that. Deutsche Bank downgraded Intuitive Surgical stock to "sell" this morning, with a $440 price target implying more than 16% downside. "Intuitive's da Vinci platform has proven to be among the most disruptive technologies in medtech history," admits the banker, with more than 10,000 systems in service globally, performing more than 3 million robotic surgeries per year. Nevertheless, Deutsche sees risks in the company's business model, primarily to its "Instruments and Accessories" business, where third-party companies have begun "remanufacturing" old surgical instruments, once produced and sold by Intuitive but later worn out and removed from service. In theory, such instruments would be replaced by new equipment produced (and sold) by Intuitive to its customers. Repair and restored-to-service old instruments, however, could cut into that business, potentially reducing the company's U.S. I&A revenue by as much as 46%, warns Deutsche today in a note covered on The Fly. How worried should investors be about this? Pretty worried, I think. Consider that Intuitive Surgical stock sells for a sky-high 82 times trailing earnings at present, and requires a brisk growth rate to justify that valuation. Most analysts only expect the company to grow earnings 16% annually over the next five years, however, which isn't really that fast for a growth stock. And now Deutsche is saying even the "16%" could be at risk? Sounds like a good reason to sell Intuitive Surgical stock and take some profits, if you ask me. Before you buy stock in Intuitive Surgical, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Intuitive Surgical wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intuitive Surgical. The Motley Fool has a disclosure policy. Why Intuitive Surgical Stock Plunged Today was originally published by The Motley Fool
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18 hours ago
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Should You Invest in Intuitive Surgical (ISRG) Based on Bullish Wall Street Views?
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3 Monster Stocks -- including Nvidia -- to Hold for the Next 10 Years
Nvidia has been growing by an average of more than 70% annually. Intuitive Surgical is the 800-pound gorilla in the robotic surgery world. Microsoft is huge and getting bigger -- while paying a dividend. 10 stocks we like better than Intuitive Surgical › The S&P 500 index tracks the stock performance of America's biggest companies, and it has averaged annual gains of roughly 10% over multiple decades. That's pretty darn good performance, enough to more than quintuple an investment over 15 years for those who purchased exchange-traded funds (ETFs) mirroring the index. Some individual stocks, though, have done better than that -- much better. In the table below, you'll see that the S&P 500 has been growing at a much faster rate over the past 15 years compared to its long-term 10% average. That outsized performance is due, in part, to the eye-popping average annual gains of some of its components, including what some might label as monster stocks, that have managed monster performances. Average Annual Return SPDR S&P 500 ETF (NYSEMKT: SPY) 14.85% 12.90% 14.18% Nvidia (NASDAQ: NVDA) 73.46% 73.83% 50.57% Intuitive Surgical (NASDAQ: ISRG) 23.08% 26.07% 20.03% Microsoft (NASDAQ: MSFT) 20.78% 26.64% 21.75% Data source: as of June 6, 2025. These kinds of returns are not guaranteed to continue. Many dynamically growing companies see their growth rates slow as they become massive companies. But a select few manage to keep up that outsized growth. Here's a closer look at three companies with this potential and some reasons why you might want to buy and/or keep holding any of them. Nvidia got its start as a maker of semiconductor chips for the videogame industry, but it has expanded its scope in the past decade. A side hustle into chip design catered to aid cryptocurrency mining has led to the development of chips and software that are now fueling the artificial intelligence (AI) boom, and it is churning out gobs of chips for data centers -- enough to be the world's leading supplier of graphics processing units for the data centers used in cloud computing. Data centers have replaced gaming as Nvidia's focus, and the company raked in $39 billion in revenue in fiscal 2026's first quarter from its data center business -- fully 89% of total revenue. Better still, CEO Jensen Huang forecasts that AI infrastructure spending could top $1 trillion annually within a few years, and he sees Nvidia capturing most of that business. Despite the monster performance over the past several years, Nvidia stock doesn't appear to be wildly overvalued at recent levels. Its recent forward-looking price-to-earnings (P/E) ratio of 33, for example, is well below the five-year average of 40. Consider buying Nvidia to hold for the next 10 years or more to take advantage of this forecasted growth. Intuitive Surgical is another strong stock performer, though it's not as attractively valued as Nvidia lately. Its forward P/E was recently at a steep 72, well above the five-year average of 56 (which is steep as well). So think twice before buying at these levels and look for opportunities to buy on the dip. But if you already own the stock, you might want to hold on. Intuitive Surgical is a leader in robotic surgery equipment. It has more than 8,600 of its million-dollar-plus da Vinci robotic surgery systems installed in 71 countries. Together, they've been used to perform more than 14 million medical procedures. I'm a shareholder and I'm hanging on because I expect the company to keep selling and installing surgical systems, and to keep raking in profits from doing so. Notably, Intuitive Surgical derives 84% of its revenue not from the systems themselves, but from dependable recurring sales of servicing, supplies, and accessories for the machines. Microsoft is a tech giant with many growing operations contributing to its steady growth. It's home to the dominant Office 365 suite of applications, the Azure cloud computing platform, the Xbox gaming platform, the Windows operating system, and even the business-oriented social media giant LinkedIn, among other ventures. Microsoft is huge (its market value hovers around $3.5 trillion), but it's still growing at a fairly rapid clip, with some of its recent growth largely attributable to its AI-related ventures. In its third quarter of fiscal 2025, revenue was up by 13% year over year, and net income rose by 18%. Its intelligent cloud division grew by 21%. The company is generating more cash than it needs to spend on growth, so it's paying shareholders a dividend that recently yielded 0.71%. (That might not seem like a lot, but the yield is pushed down because of strong share price performance and the dividend is growing briskly -- up from $2.09 per share in 2020 to $3.24 per share currently.) Despite the strong share price performance, its stock remains appealingly valued, too, with a recent forward P/E of 31 only a bit above the five-year average of 30. Given the steady growth, the stock seems well worth hanging on to for the next decade -- and beyond. Before you buy stock in Intuitive Surgical, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Intuitive Surgical wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Selena Maranjian has positions in Intuitive Surgical, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Intuitive Surgical, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 3 Monster Stocks -- including Nvidia -- to Hold for the Next 10 Years was originally published by The Motley Fool
