#5 - Intuitive Surgical (NASDAQ:ISRG)
Intuitive Surgical Inc. (NASDAQ: ISRG) gives investors a different option for investing in large-cap healthcare stocks. In fact, some investors may feel that Intuitive Surgical is more of a play on technology/artificial intelligence stocks as the company is best known for its da Vinci robotic surgical system.
Revenue for its da Vinci systems grew 17% year-over-year. And the news gets even better because every sale of its da Vinci system increases the company’s recurring revenue base. Total revenue in its most recent quarter was $2.01 billion. That revenue is also boosting the company’s bottom line.
But is it enough to justify ISRG stock’s premium valuation which is currently 93x earnings? That’s a hefty premium to pay. But analysts may be sharpening their pencils and rethinking their calculations as lower interest rates may generate more interest from customers who have been hesitant to finance a da Vinci system. Since the company’s July earnings report, several analysts give ISRG stock a price target well above its consensus estimate.
About Intuitive Surgical
Intuitive Surgical, Inc develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care in the United States and internationally. The company offers the da Vinci Surgical System that enables complex surgery using a minimally invasive approach; and Ion endoluminal system, which extends its commercial offerings beyond surgery into diagnostic procedures enabling minimally invasive biopsies in the lung.
Read More - Current Price
- $484.76
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 15 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $449.70 (7.2% Downside)
