Latest news with #IntuitiveSurgical
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
22-05-2025
- Business
- Yahoo
2 Stocks That Turned $1,000 Into More Than $8,000 in 10 Years to Buy and Hold
Intuitive Surgical and Veeva Systems have crushed the market since 2015. Both companies have large growth runways and strong moats. They can deliver more market-beating returns in the long run. 10 stocks we like better than Intuitive Surgical › The average stock market return over the past few decades (without accounting for inflation) is around 10%. That makes broader equities highly competitive compared to other asset classes, especially since investors can do better than standard returns. The key is to invest in companies with market-beating potential. Even though past success is no guarantee of the future, it is often helpful to start by looking at companies with a history of performing better than the market. Two examples are Intuitive Surgical (NASDAQ: ISRG) and Veeva Systems (NYSE: VEEV). These companies have produced the kinds of returns in the past decade that turned an initial investment of $1,000 into well over $8,000. Here is why they can still beat the market. Over the past 10 years, Intuitive Surgical, a medical device specialist, has produced a compound annual growth rate of 26.1%. That's good enough to turn $1,000 into $10,140. In contrast, a $1,000 investment in the S&P 500 would turn to just $3,320 over the same period at an annual return rate of about 12.8%. How did Intuitive Surgical pull it off? The company is the undisputed leader in the robotic-assisted surgery (RAS) market thanks to its da Vinci system, though it markets another device called the Ion. The da Vinci system is its main growth driver, and is approved for various procedures, including bariatric, urologic, cardiac, gynecologic, and general surgeries, among many others. Intuitive Surgical has had little competition for its crown jewel. With the growing adoption of RAS, the company's revenue and earnings have rapidly increased over the past 10 years. The competitive landscape is changing. Medtronic, another medical device specialist, is close to earning clearance in the U.S. for its Hugo system in urologic procedures. Johnson & Johnson, another healthcare leader, could eventually enter this market too with its Ottava system. Despite mounting competition, Intuitive Surgical could still deliver market-beating returns, though perhaps not as impressively as it has since 2015. It has a tremendous first-mover advantage in the RAS market, with an installed da Vinci base of 10,189 as of the end of the first quarter, an increase of 15% year over year. Since these devices are expensive, healthcare facilities want to stick with whichever one they chose first. If it breaks, Intuitive Surgical offers repair services. And if they break irreparably and must be replaced, it's easier to get the same model since hospital staff have already spent considerable time training on it. In other words, Intuitive Surgical benefits from high switching costs for its customers. Meanwhile, an increasingly aging population worldwide should lead to even greater volumes in surgical procedures undertaken, and that ultimately benefits Intuitive Surgical. The company's first mover advantage, competitive moat, and significant growth avenues make its prospects attractive. It's not too late to get in on this company, despite it crushing the market over the past decade -- it can do the same through 2035. Veeva Systems offers cloud-based services to life science companies. It has found tremendous success in the past 10 years, a period during which the stock rose at a CAGR of 24.2%, good enough to turn $1,000 into $8,734. The cloud industry is ruthlessly competitive and is dominated by companies far larger than Veeva Systems, but it has found success by focusing almost exclusively on the healthcare industry. The companies it caters to in the healthcare space have specific demands and needs, and operate in a highly regulated environment. They often spend significant amounts in upfront investments and undertake years of research and data collection before launching a product to market. Because of these constraints, many generic cloud services won't work with them. Enter Veeva Systems. The company's success in this niche explains its performance since 2015. It has generated excellent financial results, even with a slowdown in the cloud market about three years ago due to an economic downturn. That could happen again if many investors' fears come true and we find ourselves in a recession. However, Veeva Systems' prospects for the next decade still look strong. Recessions don't last forever, and the projections point to the cloud market's continued growth. It is worth noting that Veeva Systems also benefits from high switching costs. Its clients depend on its services for day-to-day operations, be it to collect and store data, for regulatory compliance, and more. They wouldn't want to switch providers and risk disrupting daily operations. Veeva Systems' switching costs are another reason it has been able to compete in a sea of larger companies, and it still has plenty of room to run within its addressable market. It estimates a $20 billion opportunity, of which it has captured about 14%. Further, the company's TAM should continue growing along with the life sciences industry, like it has in the past. Veeva Systems should continue beating the market over the next decade as it makes more headway into its still under-penetrated niche of the massive cloud industry. 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 $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% 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 May 19, 2025 Prosper Junior Bakiny has positions in Intuitive Surgical. The Motley Fool has positions in and recommends Intuitive Surgical and Veeva Systems. The Motley Fool has a disclosure policy. 2 Stocks That Turned $1,000 Into More Than $8,000 in 10 Years to Buy and Hold was originally published by The Motley Fool
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
