Latest news with #ISRG
Yahoo
6 days ago
- Business
- Yahoo
Intuitive Surgical, Inc. (ISRG) Laps the Stock Market: Here's Why
Intuitive Surgical, Inc. (ISRG) closed the latest trading day at $555.75, indicating a +0.6% change from the previous session's end. This change outpaced the S&P 500's 0.4% gain on the day. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, added 0.39%. Coming into today, shares of the company had gained 7.1% in the past month. In that same time, the Medical sector lost 3.41%, while the S&P 500 gained 6.69%. Investors will be eagerly watching for the performance of Intuitive Surgical, Inc. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.92, marking a 7.87% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.35 billion, up 16.81% from the prior-year quarter. For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.84 per share and a revenue of $9.65 billion, signifying shifts of +6.81% and +15.56%, respectively, from the last year. Investors should also take note of any recent adjustments to analyst estimates for Intuitive Surgical, Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.38% downward. Intuitive Surgical, Inc. is currently a Zacks Rank #3 (Hold). Looking at its valuation, Intuitive Surgical, Inc. is holding a Forward P/E ratio of 70.45. Its industry sports an average Forward P/E of 26.28, so one might conclude that Intuitive Surgical, Inc. is trading at a premium comparatively. Also, we should mention that ISRG has a PEG ratio of 4.3. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Instruments industry had an average PEG ratio of 2.32 as trading concluded yesterday. The Medical - Instruments industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 88, positioning it in the top 36% of all 250+ industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
Baird says CEO ‘well-equipped' to further Intuitive Surgical position
After Intuitive Surgical (ISRG) announced this morning that President Dave Rosa will be promoted to Chief Executive Officer, Baird said the firm believes Rosa has long been slated to take over the CEO role, given his 29-plus years at the company. The firm, which expects Rosa to be 'well-equipped to continue to further ISRG's position as a best-in-class MedTech growth story,' keeps an Outperform and $575 price target on Intuitive Surgical shares. Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on ISRG: Disclaimer & DisclosureReport an Issue Intuitive Surgical Appoints David Rosa as CEO Intuitive Surgical announces promotion of Dave Rosa to CEO Wolfpack Research says short UFP Technologies, growth story 'in shambles' Intuitive Surgical Expands Stock Repurchase Program to $4B Intuitive Surgical announces FDA clearance of da Vinci Single Port system
Yahoo
15-05-2025
- Business
- Yahoo
ISRG Stock Gains More than 8% YTD: Will the Uptrend Continue?
Shares of Intuitive Surgical ISRG seem to gain momentum after declining for more than two months. The stock has risen 9.7% in the past month after declining more than 30% from its all-time high of $616 in January. The rally can be attributed to strong fundamentals despite tariff risks. Meanwhile, a trade deal between the United States and China has significantly lowered tariffs for 90 days, which must lower the anticipated tariff impact of 170 basis points on the cost of goods sold in 2025. Intuitive Surgical remains at the forefront of robotic-assisted surgery, driven by solid revenue performance and continued procedural growth. As the company heads into 2025, its strategic priorities include technological advancement, international expansion and improvement of manufacturing operations. However, global macroeconomic uncertainties persist, most notably the growing risk of trade conflicts, as the United States adopts a more protectionist stance under President Trump following his return to office earlier this year. ISRG reported first-quarter 2025 revenues of $2.25 billion, marking a 19.2% year-over-year increase. This underscores the company's ability to generate consistent, recurring revenues — now 85% of total earnings. ISRG recorded strong earnings per share (EPS) growth of 20% (to $1.81) and an operating margin of 34.1%. It anticipates a declining operating margin for 2025 due to increased depreciation expenses and a higher mix of lower-margin products like da Vinci 5, Ion and SP. Despite the recent fall in share price, ISRG's shares are up 8.4%, outperforming the Zacks Medical - Instruments industry's decline of 6.9% year to date. The broader Zacks Medical sector has declined 6.7% and the S&P 500 Index has decreased 0.6% in the same period. YTD Price Performance Image Source: Zacks Investment Research During the first quarter, revenues were primarily driven by continued improvements in the company's da Vinci procedure volume, coupled with strong growth in Ion and SP procedures. Intuitive Surgical has been increasing the pricing of procedures to fight inflationary pressure, which has also aided sales growth. Moreover, the rising adoption of the da Vinci 5 system further aided the top line. The company plans to launch da Vinci 5 broadly in the second half, which should drive system revenues. However, weakness in Germany, the U.K. and Japan may lead to slower adoption. Meanwhile, the clearance of the Ion platform in Australia and its launch in China should drive system placements and procedure volume. The clearance for the da Vinci SP SureForm 45 stapler in the United States, which will expand the use of SP in thoracic and colorectal indications, looks promising. The recent FDA clearance for ISRG's da Vinci Single Port surgical system for transanal local excision/resection should further drive system revenues going forward. This approved device will be used for minimally invasive surgery performed through a natural orifice to avoid abdominal surgical incisions for select procedures, especially colorectal surgery. ISRG Stock Trades Above 200-Day Average Image Source: Zacks Investment Research To fuel further expansion, ISRG plans to market its da Vinci products directly in Italy, Spain, and Portugal, at a cost of EUR 290 million, thereby deepening its customer relationships. Manufacturing expansion continues with the addition of new facilities in California, Germany, and Bulgaria, ensuring scalable production for the Da Vinci 5 and Ion systems. Additionally, digital tools, such as the My Intuitive app and VR simulators, should improve surgeon training and optimize procedural outcomes. In 2025, Intutitive Surgical expects gross margin to reflect 170 bps headwind due to newly implemented global tariffs. These costs primarily stem from three key areas — U.S.-China trade friction, European retaliatory tariffs and a small subset of Mexican exports that do not meet USMCA certification. Specifically, ISRG will incur steep tariffs on components imported from China and on finished products entering the country, with U.S. tariffs also applied to Chinese-sourced components and subassemblies for the Ion platform. The company expects the impact of tariffs to increase each quarter over the remainder of the year. However, the impact is likely to be significantly lower as the United States reduced tariffs from 145% to 30% on Chinese imports, and U.S. exports will garner a 10% tariff in China, down from 125% imposed earlier. Additionally, ISRG faces growing competition in the robotic-assisted surgery space, making cost efficiency crucial. The competition is coming from larger players, including Johnson & Johnson JNJ and Medtronic MDT, both of which are investing heavily in robotic surgery. Medtronic has recently filed an application seeking FDA clearance for its Hugo robotic-assited surgery system. A potential approval is expected in the second half of 2025. ISRG's P/E F12M Higher Than Industry Image Source: Zacks Investment Research The share price of ISRG has crossed the significant level of 200-DMA earlier this month, reflecting strength. However, the stock's pricey valuation raises concerns. The company is trading significantly higher than the industry. However, it is currently trading below its five-year median, which can act as a cushion against further decline. ISRG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Moreover, the Style Scores don't look quite promising. The company has a Value Score of D and a Growth Score of C. The valuation chart also shows the significant premium for ISRG stock compared with the industry. Moreover, the Momentum score of 'F' implies that the stock may trade within the range in the upcoming few months. As such, we believe that investors may hold the stock for now. Nevertheless, we caution against taking a new position. Strong fundamentals suggest an upside to the share price, but investors should wait for an attractive entry point. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Globe and Mail
15-05-2025
- Business
- Globe and Mail
ISRG Stock Gains More than 8% YTD: Will the Uptrend Continue?
Shares of Intuitive Surgical ISRG seem to gain momentum after declining for more than two months. The stock has risen 9.7% in the past month after declining more than 30% from its all-time high of $616 in January. The rally can be attributed to strong fundamentals despite tariff risks. Meanwhile, a trade deal between the United States and China has significantly lowered tariffs for 90 days, which must lower the anticipated tariff impact of 170 basis points on the cost of goods sold in 2025. Intuitive Surgical remains at the forefront of robotic-assisted surgery, driven by solid revenue performance and continued procedural growth. As the company heads into 2025, its strategic priorities include technological advancement, international expansion and improvement of manufacturing operations. However, global macroeconomic uncertainties persist, most notably the growing risk of trade conflicts, as the United States adopts a more protectionist stance under President Trump following his return to office earlier this year. Financial Performance and Revenue Growth ISRG reported first-quarter 2025 revenues of $2.25 billion, marking a 19.2% year-over-year increase. This underscores the company's ability to generate consistent, recurring revenues — now 85% of total earnings. ISRG recorded strong earnings per share (EPS) growth of 20% (to $1.81) and an operating margin of 34.1%. It anticipates a declining operating margin for 2025 due to increased depreciation expenses and a higher mix of lower-margin products like da Vinci 5, Ion and SP. Despite the recent fall in share price, ISRG's shares are up 8.4%, outperforming the Zacks Medical - Instruments industry's decline of 6.9% year to date. The broader Zacks Medical sector has declined 6.7% and the S&P 500 Index has decreased 0.6% in the same period. YTD Price Performance Rising Procedure Volume and Market Expansion During the first quarter, revenues were primarily driven by continued improvements in the company's da Vinci procedure volume, coupled with strong growth in Ion and SP procedures. Intuitive Surgical has been increasing the pricing of procedures to fight inflationary pressure, which has also aided sales growth. Moreover, the rising adoption of the da Vinci 5 system further aided the top line. The company plans to launch da Vinci 5 broadly in the second half, which should drive system revenues. However, weakness in Germany, the U.K. and Japan may lead to slower adoption. Meanwhile, the clearance of the Ion platform in Australia and its launch in China should drive system placements and procedure volume. The clearance for the da Vinci SP SureForm 45 stapler in the United States, which will expand the use of SP in thoracic and colorectal indications, looks promising. The recent FDA clearance for ISRG's da Vinci Single Port surgical system for transanal local excision/resection should further drive system revenues going forward. This approved device will be used for minimally invasive surgery performed through a natural orifice to avoid abdominal surgical incisions for select procedures, especially colorectal surgery. To fuel further expansion, ISRG plans to market its da Vinci products directly in Italy, Spain, and Portugal, at a cost of EUR 290 million, thereby deepening its customer relationships. Manufacturing expansion continues with the addition of new facilities in California, Germany, and Bulgaria, ensuring scalable production for the Da Vinci 5 and Ion systems. Additionally, digital tools, such as the My Intuitive app and VR simulators, should improve surgeon training and optimize procedural outcomes. Competitive Challenges and Market Headwinds In 2025, Intutitive Surgical expects gross margin to reflect 170 bps headwind due to newly implemented global tariffs. These costs primarily stem from three key areas — U.S.-China trade friction, European retaliatory tariffs and a small subset of Mexican exports that do not meet USMCA certification. Specifically, ISRG will incur steep tariffs on components imported from China and on finished products entering the country, with U.S. tariffs also applied to Chinese-sourced components and subassemblies for the Ion platform. The company expects the impact of tariffs to increase each quarter over the remainder of the year. However, the impact is likely to be significantly lower as the United States reduced tariffs from 145% to 30% on Chinese imports, and U.S. exports will garner a 10% tariff in China, down from 125% imposed earlier. Additionally, ISRG faces growing competition in the robotic-assisted surgery space, making cost efficiency crucial. The competition is coming from larger players, including Johnson & Johnson JNJ and Medtronic MDT, both of which are investing heavily in robotic surgery. Medtronic has recently filed an application seeking FDA clearance for its Hugo robotic-assited surgery system. A potential approval is expected in the second half of 2025. ISRG's P/E F12M Higher Than Industry Wrapping Up The share price of ISRG has crossed the significant level of 200-DMA earlier this month, reflecting strength. However, the stock's pricey valuation raises concerns. The company is trading significantly higher than the industry. However, it is currently trading below its five-year median, which can act as a cushion against further decline. ISRG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Moreover, the Style Scores don't look quite promising. The company has a Value Score of D and a Growth Score of C. The valuation chart also shows the significant premium for ISRG stock compared with the industry. Moreover, the Momentum score of 'F' implies that the stock may trade within the range in the upcoming few months. As such, we believe that investors may hold the stock for now. Nevertheless, we caution against taking a new position. Strong fundamentals suggest an upside to the share price, but investors should wait for an attractive entry point. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report Medtronic PLC (MDT): Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report
Yahoo
09-05-2025
- Business
- Yahoo
Intuitive Surgical (ISRG) Fell Due to Investor Rotation
Baron Funds, an investment management company, released its 'Baron Health Care Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 2.54% (Institutional Shares) in the quarter compared to a 3.87% gain for the Russell 3000 Health Care Index (benchmark) and a 4.72% decline for the Russell 3000 Index (the Index). The fund trailed the benchmark due to stock selection and, to a lesser extent, active sub-industry weights. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Baron Health Care Fund highlighted stocks such as Intuitive Surgical, Inc. (NASDAQ:ISRG). Intuitive Surgical, Inc. (NASDAQ:ISRG) manufactures and markets products that help physicians and healthcare providers improve the quality of and access to minimally invasive care. The one-month return of Intuitive Surgical, Inc. (NASDAQ:ISRG) was 9.03%, and its shares gained 39.17% of their value over the last 52 weeks. On May 8, 2025, Intuitive Surgical, Inc. (NASDAQ:ISRG) stock closed at $538.16 per share with a market capitalization of $192.886 billion. Baron Health Care Fund stated the following regarding Intuitive Surgical, Inc. (NASDAQ:ISRG) in its Q1 2025 investor letter: "Intuitive Surgical, Inc. (NASDAQ:ISRG) manufactures the da Vinci Surgical System, a robotic surgical system used for minimally invasive surgical procedures. The stock fell due to investor rotation out of high growth companies. In addition, concerns emerged about the potential impact of tariffs on Intuitive's earnings because Intuitive manufactures instruments in Mexico. If the company can get a health care exception to exempt it from tariffs, we think there are steps it could take to minimize the impact. In any event, we do not think tariffs alter the long-term investment thesis and continue to have a positive long-term view of Intuitive's opportunity to expand adoption of its robotic systems." A medical team performing minimally invasive surgery with a da Vinci Surgical System. Intuitive Surgical, Inc. (NASDAQ:ISRG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 95 hedge fund portfolios held Intuitive Surgical, Inc. (NASDAQ:ISRG) at the end of the fourth quarter which was 82 in the previous quarter. In the first quarter of 2025, Intuitive Surgical, Inc. (NASDAQ:ISRG) reported revenue of $2.25 billion, a 19% increase over last year. While we acknowledge the potential of Intuitive Surgical, Inc. (NASDAQ:ISRG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In another article, we covered Intuitive Surgical, Inc. (NASDAQ:ISRG) and shared the list of best medical device stocks to buys. In Q4 2024 investor letter, Baron Health Care Fund expressed its positive outlook on Intuitive Surgical, Inc.'s (NASDAQ:ISRG) long-term potential for growth. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey.
