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Here's Why You Should Buy Intuitive Surgical (ISRG) Now

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Intuitive Surgical, Inc. (ISRG - Free Report) is one of the top-performing stocks in the MedTech space now. A solid outlook for 2018 and strength in robotics currently favor the stock.

Price Performance

In a year’s time, shares of Intuitive Surgical have rallied 27% compared with the industry's 1.8% growth. The current level also compares favorably with the S&P 500 index’s decline of 8%.

The stock currently carries a Zacks Rank #2 (Buy).

What Makes the Stock an Attractive Pick?

Bullish Outlook

Intuitive Surgical forecasts 2018 procedure growth in the range of 17-18%, up from 14.5-16.5% projected earlier.

For 2018, the company expects adjusted gross profit margin in the band of 70.5-71.5% of net revenues.

Operating expenses are anticipated to rise 15.5-17% compared with 16-18% estimated earlier.

Strength in Robotics

Intuitive Surgical’s robot-based da Vinci surgical system enables minimally-invasive surgery that reduces the trauma associated with open surgery and has consistently driven the company’s top line. The da Vinci System is powered by robotic technology which has provided the company with solid exposure to medical mechatronics, robotics and Artificial Intelligence for healthcare.

In the last reported quarter, da Vinci procedures increased approximately 20% from the year-ago quarter. Notably, mature procedure growth in the United States includes prostatectomy and hysterectomy. In Japan, procedures grew above 40% year over year. However, European procedure performance has been in line with solid strength in the United Kingdom.

Which Way Are Estimates Treading?

For the fourth quarter, the Zacks Consensus Estimate for earnings is pegged at $2.96, reflecting year-over-year growth of 16.5%. The same for revenues stands at $1.02 billion, mirroring a 14.5% improvement year over year.

For 2018, the Zacks Consensus Estimate for earnings is pinned at $10.97, reflecting 22% growth from the previous-year number. The same for revenues is pegged at $3.7 billion, indicating a rise of 18.2%.

Other Key Picks

Other top-ranked stocks in the broader medical space are Veeva Systems Inc. (VEEV - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and OPKO Health, Inc. (OPK - Free Report) .

Veeva Systems’ long-term earnings growth rate is projected at 19.5%. The stock currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Integer projects earnings growth rate of 31.2% for the fourth quarter. It currently carries a Zacks Rank #1.

OPKO Health’s long-term earnings growth rate is projected at 12%. The stock presently sports a Zacks Rank of 2 (Buy).

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