#6 - Intuitive Surgical (NASDAQ:ISRG)
There were caution flags about investing in healthcare technology stocks in an election year before the pandemic broke out. And in the midst of a pandemic that is seeing many hospitals cancel elective surgeries (which are their bread and butter), it may seem like an odd time to be recommending a company like Intuitive Surgical (NASDAQ:ISRG) a leader in robotic surgery.
The Covid-19 pandemic is unique in that it hasn’t destroyed demand; it’s just forcing it to be delayed. When our economy begins to reopen, hospitals will be eager to reschedule these procedures to shore up ailing balance sheets. And patients will be looking to take care of the procedures that they were forced to put off.
Investors seem to feel the same way, the stock is still down over 15% for the year. But at one point the stock was down over 30%. Sentiment is ticking up. And one thing you look for in any downturn is companies that have strong balance sheets. With no debt and nearly $6 billion in cash and equivalents on its books, plus an adjusted operating margin of 56% for 2019, Intuitive Surgical fits that description to a tee.
Intuitive Surgical is using that strong balance sheet to expand its reach. The company recently acquired Orpheus Medical, allowing it to expand into areas such as hospital data management and IT services.
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
- $544.02
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 15 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $554.17 (1.9% Upside)
