We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Reasons to Retain Intuitive Surgical (ISRG) Stock For Now
Read MoreHide Full Article
Intuitive Surgical, Inc. (ISRG - Free Report) is well poised for growth in the coming quarters, backed by its strength in robotics. A robust fourth-quarter 2021 performance, along with its suite of innovative technologies, is expected to contribute further. The risks of procedure adoption and stiff competition persist.
Over the past year, this Zacks Rank #3 (Hold) stock has gained 15.4% versus the 2.7% fall of the industry and the S&P 500’s 14.3% rise.
The renowned provider of minimally invasive care as well as the pioneer of robotic-assisted surgery, has a market capitalization of $100.96 billion. It projects 10% growth for the next five years and expects to maintain its strong performance. Intuitive Surgical’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and broke even in the other one, with the average earnings surprise being 15.1%.
Image Source: Zacks Investment Research
Let’s delve deeper.
Strength in Robotics: We are upbeat about Intuitive Surgical’s robot-based da Vinci surgical system that enables minimally-invasive surgery and reduces the trauma associated with open surgery. The da Vinci system is powered by robotic technology that has provided the company with solid exposure to medical mechatronics, robotics and AI for healthcare space. The company has also launched an upgrade to its flagship Vinci Xi technology – da Vinci X.
Innovative Technologies: We are optimistic about Intuitive Surgical’s continuous introduction of technologies for surgical systems. Per the fourth-quarter 2021 earnings call, growth of the SP platform is likely to be driven by additional clinical indications and clearances in markets beyond the United States and Korea.
During the fourth quarter of 2021, the company received 510(k) clearance not only for its Firefly Imaging Technology, but also for improvements in its SP instruments, including an expansion of lives to six of its eight instruments.
Strong Q4 Results: Intuitive Surgical’s solid fourth-quarter 2021 results buoy our optimism. The company’s revenue growth in the quarter reflects procedure increase and rise in system placements. Strong segmental performances were a plus. Intuitive Surgical recorded an uptick in the da Vinci system’s procedure volume in the fourth quarter. Expansion in gross margin bodes well. Per management, despite the challenging environment due to the COVID-19 resurgence, ISRG continued witnessing growth in its products in the quarter under review. Capital demand remained robust as well.
Downsides
Risk of Procedure Adoption: Intuitive Surgical faces the risk of adoption of its procedures. This is because adoption growth takes time, as each procedure needs to gain credibility. Furthermore, broad use of the company’s products requires training of surgical teams. Market acceptance could be delayed by the time required to complete such trainings.
Stiff Competition: Intuitive Surgical used to enjoy a monopoly in the market for robots used in abdominal surgery since the launch of its flagship device, da Vinci system, back in 2000. However, after the regulatory approval of Transenterix's surgical robot for abdominal surgery in 2017, competition for Intuitive Surgical intensified.
Estimate Trend
Intuitive Surgical is witnessing a negative estimate revision trend for 2022. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 11.9% south to $4.87.
The Zacks Consensus Estimate for the company’s first-quarter 2022 revenues is pegged at $1.44 billion, suggesting an 11.8% improvement from the year-ago quarter’s reported number.
Key Picks
A few stocks from the broader medical space that investors can consider are AMN Healthcare Services, Inc. (AMN - Free Report) , Allscripts Healthcare Solutions, Inc. (MDRX - Free Report) and Henry Schein, Inc. (HSIC - Free Report) .
AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings surpassed estimates in the trailing four quarters, the average surprise being 20%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has gained 37.2% against the industry’s 53.3% fall over the past year.
Allscripts, carrying a Zacks Rank #2 (Buy), has an estimated long-term growth rate of 16.3%. MDRX’s earnings surpassed estimates in the trailing four quarters, the average surprise being 64.8%.
Allscripts has gained 41.2% against the industry’s 47.9% fall over the past year.
Henry Schein has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average surprise being 25.5%. It currently has a Zacks Rank #2.
Henry Schein has gained 29.3% compared with the industry’s 7.1% rise over the past year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Reasons to Retain Intuitive Surgical (ISRG) Stock For Now
Intuitive Surgical, Inc. (ISRG - Free Report) is well poised for growth in the coming quarters, backed by its strength in robotics. A robust fourth-quarter 2021 performance, along with its suite of innovative technologies, is expected to contribute further. The risks of procedure adoption and stiff competition persist.
Over the past year, this Zacks Rank #3 (Hold) stock has gained 15.4% versus the 2.7% fall of the industry and the S&P 500’s 14.3% rise.
The renowned provider of minimally invasive care as well as the pioneer of robotic-assisted surgery, has a market capitalization of $100.96 billion. It projects 10% growth for the next five years and expects to maintain its strong performance. Intuitive Surgical’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and broke even in the other one, with the average earnings surprise being 15.1%.
Image Source: Zacks Investment Research
Let’s delve deeper.
Strength in Robotics: We are upbeat about Intuitive Surgical’s robot-based da Vinci surgical system that enables minimally-invasive surgery and reduces the trauma associated with open surgery. The da Vinci system is powered by robotic technology that has provided the company with solid exposure to medical mechatronics, robotics and AI for healthcare space. The company has also launched an upgrade to its flagship Vinci Xi technology – da Vinci X.
Innovative Technologies: We are optimistic about Intuitive Surgical’s continuous introduction of technologies for surgical systems. Per the fourth-quarter 2021 earnings call, growth of the SP platform is likely to be driven by additional clinical indications and clearances in markets beyond the United States and Korea.
During the fourth quarter of 2021, the company received 510(k) clearance not only for its Firefly Imaging Technology, but also for improvements in its SP instruments, including an expansion of lives to six of its eight instruments.
Strong Q4 Results: Intuitive Surgical’s solid fourth-quarter 2021 results buoy our optimism. The company’s revenue growth in the quarter reflects procedure increase and rise in system placements. Strong segmental performances were a plus. Intuitive Surgical recorded an uptick in the da Vinci system’s procedure volume in the fourth quarter. Expansion in gross margin bodes well. Per management, despite the challenging environment due to the COVID-19 resurgence, ISRG continued witnessing growth in its products in the quarter under review. Capital demand remained robust as well.
Downsides
Risk of Procedure Adoption: Intuitive Surgical faces the risk of adoption of its procedures. This is because adoption growth takes time, as each procedure needs to gain credibility. Furthermore, broad use of the company’s products requires training of surgical teams. Market acceptance could be delayed by the time required to complete such trainings.
Stiff Competition: Intuitive Surgical used to enjoy a monopoly in the market for robots used in abdominal surgery since the launch of its flagship device, da Vinci system, back in 2000. However, after the regulatory approval of Transenterix's surgical robot for abdominal surgery in 2017, competition for Intuitive Surgical intensified.
Estimate Trend
Intuitive Surgical is witnessing a negative estimate revision trend for 2022. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 11.9% south to $4.87.
The Zacks Consensus Estimate for the company’s first-quarter 2022 revenues is pegged at $1.44 billion, suggesting an 11.8% improvement from the year-ago quarter’s reported number.
Key Picks
A few stocks from the broader medical space that investors can consider are AMN Healthcare Services, Inc. (AMN - Free Report) , Allscripts Healthcare Solutions, Inc. (MDRX - Free Report) and Henry Schein, Inc. (HSIC - Free Report) .
AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings surpassed estimates in the trailing four quarters, the average surprise being 20%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has gained 37.2% against the industry’s 53.3% fall over the past year.
Allscripts, carrying a Zacks Rank #2 (Buy), has an estimated long-term growth rate of 16.3%. MDRX’s earnings surpassed estimates in the trailing four quarters, the average surprise being 64.8%.
Allscripts has gained 41.2% against the industry’s 47.9% fall over the past year.
Henry Schein has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average surprise being 25.5%. It currently has a Zacks Rank #2.
Henry Schein has gained 29.3% compared with the industry’s 7.1% rise over the past year.