Is Intuitive Surgical (ISRG) One of the Best Healthcare Stocks to Buy According to Billionaires?
We recently published a list of 10 Best Healthcare Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Intuitive Surgical, Inc. (NASDAQ:ISRG) stands against other best healthcare stocks to invest in.
Healthcare stocks experienced a challenging year in 2024, lagging behind high-growth sectors like tech and AI. Market uncertainties and policy challenges also created obstacles for certain segments within the industry. In the first half of the year, investors focused on technology and communication services, drawing attention away from healthcare. While the sector showed some improvement in the latter half as the market rally expanded, certain segments continued to struggle with supply and demand imbalances caused by the pandemic. One major factor was the increased demand for delayed medical procedures, as patients sought treatments they had postponed. This benefited healthcare facilities and medical device manufacturers but put financial pressure on managed-care insurers.
Additionally, companies specializing in life sciences tools and services faced lower demand, as COVID-19 testing declined and pandemic-related inventory levels were still being reduced. Policy concerns also weighed on the sector, particularly for insurers offering Medicare Advantage plans, as reimbursement rates fell short. Uncertainty surrounding upcoming elections further contributed to the healthcare sector's struggles. On a positive note, innovation remained strong, as the biotech industry saw promising clinical developments, and advancements in treatments for conditions like obesity and diabetes fueled significant growth in the pharmaceutical sector.
In the first quarter of 2025, healthcare stocks were among the strongest performers in the S&P index, outpacing the broader market. This marks a sharp contrast to their struggles in recent years. In 2024, the healthcare sector saw a modest gain of 2.06%, trailing the market's 25.02% return. A similar pattern was seen in 2023, with healthcare stocks rising just 2% while the overall market climbed 26%. Despite these challenges, healthcare remains a vital part of the economy, driven by increasing demand for medical products and services as the population ages. It is the fourth largest sector in the market, following technology, financials, and consumer discretionary. In the Russell MidCap Index, which tracks about 800 companies, healthcare ranks fifth, while in the small-cap Russell Index, it holds the third spot behind industrials and financials. Rob Haworth, senior investment strategy director for US Bank Asset Management, said:
'Investors can gain exposure to the healthcare sector by owning the S&P 500 through a passively managed index fund or ETF. Investors may also want to take a more selective approach, as the record demonstrates there can be varied performance within the healthcare sector.'
Investors are taking a cautious approach as they assess potential policy shifts under the new administration. With a change in leadership at the Department of Health and Human Services, major healthcare companies could face greater scrutiny and may need to adjust to evolving policies.
As the Trump administration's policies come into focus, concerns are emerging over potential budget cuts that could directly affect healthcare organizations. With the Department of Government Efficiency tasked with cutting $1 trillion from a $6 trillion budget, reductions in healthcare spending appear likely. On January 17, the House Ways and Means Committee released a list of possible cuts to support the extension of the 2017 Tax Cuts and Jobs Act. Among the proposals are eliminating the tax-exempt status of municipal bonds and potentially revoking the nonprofit status of hospitals and health systems. At the same time, hospital mergers and acquisitions have been steadily rebounding from pandemic-era lows, despite strict federal antitrust policies. However, it remains to be seen how future changes in regulatory leadership might influence M&A activity.
Despite policy concerns, some billionaire investors remain confident in the healthcare sector's future. Carl Cook, with an estimated net worth of $10.3 billion, is among the wealthiest figures in the healthcare industry. He took over as CEO of his family's medical device company in 2011 following his father's death. In 2017, the company sold one of its subsidiaries to a drug delivery technology firm for $950 million. Cook also serves as president of a life sciences division focused on developing a cell therapy for urinary incontinence. Another billionaire investor in the healthcare sector is Ronda Stryker, with a net worth of $8.4 billion. Known for her contributions to medical technology and philanthropy, she has played a major role in advancing healthcare innovation. As the granddaughter of Dr. Homer Stryker, founder of a medical technology firm, she is committed to improving lives through medical advancements and social initiatives.
A medical team performing minimally invasive surgery with a da Vinci Surgical System.
To collect data for this article, we scanned Insider Monkey's database of billionaires' stock holdings and picked the top 10 companies operating in the healthcare sector with the highest number of billionaire investors in Q4 of 2024. The stocks are ranked in ascending order based on the number of billionaire investors. We have also mentioned the value of billionaire holdings for further insight.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().
Number of Billionaire Investors: 18
Value of Billionaire Holdings: $5 billion
Intuitive Surgical, Inc. (NASDAQ:ISRG), a California-based company, develops and markets technologies that help physicians and healthcare providers improve the quality and accessibility of minimally invasive care in the US and globally. On January 24, RBC Capital Markets reaffirmed its positive stance on the stock, maintaining an Outperform rating and setting a price target of $641 on the shares. Analysts appreciated the firm's strong fourth-quarter performance in 2024. ISRG ranks high on our list of the best healthcare stocks to invest in.
In 2024, Intuitive Surgical, Inc. (NASDAQ:ISRG) reported $8.4 billion in revenue, reflecting a 17% increase from 2023, with 84% of it being recurring. Operating expenses remained at the lower end of their estimated range, while product margins improved due to higher shipment volumes, better factory utilization, and cost efficiencies in components, shipping, and logistics. As a result, net income rose by 29% compared to the previous year. For the fourth quarter, revenue reached $2.41 billion, marking a 25% year-over-year increase. Systems revenue grew by 36%, driven by a 19% rise in da Vinci system placements, a higher average selling price, and a greater mix of purchases. By the end of the year, the company held $8.8 billion in cash and investments, up from $8.3 billion in the third quarter. This increase was due to cash generated from operations, partially offset by $312 million in capital expenditures.
On January 27, Intuitive Surgical, Inc. (NASDAQ:ISRG) announced a $45 million donation to the Intuitive Foundation to further its mission of reducing disease and suffering worldwide. The funds will support philanthropic initiatives, research, and education aimed at improving patient outcomes. With this contribution, Intuitive's total donations to the Foundation since its establishment in 2018 have surpassed $170 million.
Overall, ISRG ranks 3rd on our list of the best healthcare stocks to buy according to billionaires. While we acknowledge the potential of ISRG to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ISRG but that trades at less than 5 times its earnings, check out our report about the .
READ NEXT: and .
Disclosure: None. This article is originally published at Insider Monkey.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
28 minutes ago
- Yahoo
James River Group Holdings, Ltd. (NASDAQ:JRVR) is largely controlled by institutional shareholders who own 80% of the company
Given the large stake in the stock by institutions, James River Group Holdings' stock price might be vulnerable to their trading decisions The top 7 shareholders own 51% of the company Recent purchases by insiders Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. To get a sense of who is truly in control of James River Group Holdings, Ltd. (NASDAQ:JRVR), it is important to understand the ownership structure of the business. We can see that institutions own the lion's share in the company with 80% ownership. Put another way, the group faces the maximum upside potential (or downside risk). Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute. In the chart below, we zoom in on the different ownership groups of James River Group Holdings. Check out our latest analysis for James River Group Holdings Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. James River Group Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of James River Group Holdings, (below). Of course, keep in mind that there are other factors to consider, too. Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. James River Group Holdings is not owned by hedge funds. The company's largest shareholder is Gallatin Point Capital LLC, with ownership of 13%. T. Rowe Price Group, Inc. is the second largest shareholder owning 10% of common stock, and BlackRock, Inc. holds about 6.6% of the company stock. Furthermore, CEO Frank D'Orazio is the owner of 0.5% of the company's shares. We did some more digging and found that 7 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Shareholders would probably be interested to learn that insiders own shares in James River Group Holdings, Ltd.. In their own names, insiders own US$5.3m worth of stock in the US$268m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling. With a 18% ownership, the general public, mostly comprising of individual investors, have some degree of sway over James River Group Holdings. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for James River Group Holdings that you should be aware of. But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Inicia sesión para acceder a tu portafolio
Yahoo
32 minutes ago
- Yahoo
Shareholders in Hurco Companies (NASDAQ:HURC) are in the red if they invested five years ago
Ideally, your overall portfolio should beat the market average. But every investor is virtually certain to have both over-performing and under-performing stocks. At this point some shareholders may be questioning their investment in Hurco Companies, Inc. (NASDAQ:HURC), since the last five years saw the share price fall 46%. But it's up 6.7% in the last week. Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Hurco Companies wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually desire strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size. Over five years, Hurco Companies grew its revenue at 0.08% per year. That's not a very high growth rate considering it doesn't make profits. Given this fairly low revenue growth (and lack of profits), it's not particularly surprising to see the stock down 8% (annualized) in the same time frame. The key question is whether the company can make it to profitability, and beyond, without trouble. It could be worth putting it on your watchlist and revisiting when it makes its maiden profit. You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values). We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.. We've already covered Hurco Companies' share price action, but we should also mention its total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Dividends have been really beneficial for Hurco Companies shareholders, and that cash payout explains why its total shareholder loss of 41%, over the last 5 years, isn't as bad as the share price return. While the broader market gained around 12% in the last year, Hurco Companies shareholders lost 9.6%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. However, the loss over the last year isn't as bad as the 7% per annum loss investors have suffered over the last half decade. We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with Hurco Companies (including 1 which shouldn't be ignored) . If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: most of them are flying under the radar). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Miami Herald
34 minutes ago
- Miami Herald
Huge home retailer filing Chapter 11 bankruptcy, closing stores
While certain discount retailers have thrived, not every chain has the loyal customers that support Marshalls, Ollie's Bargain Outlet, Ross Dress for Less, HomeGoods, and other thriving chains. In fact, the current retail apocalypse has claimed a lot of players in the discount space including some that seemed to have a devout following. The death of Christmas Tree Shops, for example, was shocking only because that chain seemed to have a cult following. Related: Costco to make generous offer to frustrated phone customers It was perhaps less surprising when Bed Bath and Beyond went out of business as that chain seemed to have lost its way, but its death was unexpected if only because the retailer filled a product niche. Retailers including Tuesday Morning, which offered the same treasure hunt model made popular by Marshalls, TJ Maxx, and HomeGoods - all sister brands under TJX Companies (TJX) - did not survive its Chapter 11 bankruptcy. Don't miss the move: Subscribe to TheStreet's free daily newsletter Joann and Party City were not discount retailers, but they also served very specific audiences and could not find enough customers to survive. In both of those cases, it took multiple bankruptcies to kills the popular brands and it's likely their debt was simply impossible to overcome. Now, a popular home goods brands (and rival to HomeGoods) is preparing a Chapter 11 bankruptcy filing which will likely included closing multiple stores. At Home sells a bit of everything people need for their home. That includes furniture, accessories, and pretty much else that might go in a house. The company described its business on its website: "For over 46 years, At Home has been a trusted destination for stylish, approachable design - offering everything a decorator may need to transform their space into a true reflection of who they are, how they want to live, and the memories they aim to create at home. Discover everything for every room, from Furniture, Rugs and Décor to Bedding, Bath, Outdoor and more. Explore curated collections, incredible seasonal selections and unique pieces that show off your signature style. Design your life At Home," the company shared. Many home goods retailers saw banner business during the Covid pandemic. Even though stores were closed, or at least limited, customers were stuck at home so they worker on making that space as comfortable as possible. More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy A lot of people built home offices, replaced old couches, and made other improvements. That pulled some demand forward and created unpredictable sales patterns as normal replacements cycles were thrown off. It's a phenomenon that created some up and down quarters for numerous retailers including Best Buy, Lowe's, and Home Depot. An At Home bankruptcy has been rumored for quite some time and now a number of media reports have shared that it's expected to happen imminently. The chain missed a key interest payment on May 15. That's often a planned move for a company looking to file for Chapter 11 bankruptcy protection. Skipping a payment can force a lender to foreclose on the loan, but it can also bring them to the bargaining table. At Home has until June 30, to catch up on that payment and fix its account, but a bankruptcy filing is more likely. Once it files for Chapter 11 bankruptcy (should it choose to do so), the struggling retailer, is expected to immediately begin closing about 10% of its stores. The chain currently operates 200 stores and other beyond the original 20 may face closure as well. At Home has blamed its financial woes at least partly on President Donald Trump's tariffs, which have increased the price of certain goods while creating pricing uncertainties going forward. The tariffs have also slowed down some discretionary consumer spending as people wait to see what their impact will be. At Home sources most of its products from China, the country that will be hit the hardest by the tariffs. It has been working to buy items from other sources, but it's not easy or quick to revamp you supply chain. At Home and its parent company have not responded to media requests for comment. Related: Iconic liquor brand in Chapter 11 bankruptcy faces liquidation The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
