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.
Shares of Intuitive Surgical, Inc. (ISRG - Free Report) reached a new 52-week high of $1,058.93 on Aug 19, before closing the session marginally lower at $1,055.64.
Shares of the company have gained 52.1% in the past year compared with the industry’s 13.7% growth and the S&P 500's 30.9% rise.
The company is witnessing an upward trend in its stock price, prompted by its strength in robotics. Intuitive Surgical’s solid performance in the second quarter of 2021 and its innovative technologies buoy optimism. Rising production costs and risk of procedure adoption are major downsides.
Image Source: Zacks Investment Research
Let's delve deeper.
Key Growth Drivers
Strong Q2 Results: Intuitive Surgical’s better-than-expected results in second-quarter 2021 buoy optimism. The company’s revenue growth in the second quarter of 2021 reflected procedure growth and higher-than-expected system placements. Strong segmental performance was seen during the quarter. Intuitive Surgical recorded uptick in the da Vinci procedure volume in the second quarter. Expansion in both gross and operating margins bodes well. Per management, the quarter exhibited both the demand for superior quality minimally invasive procedures, along with a return to surgeries that were deferred during the pandemic.
Strength in Robotics: Intuitive Surgical’s robot-based da Vinci surgical system enables minimally invasive surgery that reduces the trauma associated with open surgery, thus raising market sentiment. The da Vinci System is powered by robotic technology, which has provided the company with solid exposure to medical mechatronics, robotics and AI for healthcare.
The company launched an upgrade to its flagship Vinci Xi technology – da Vinci X. The Xi suite is designed to seamlessly integrate future innovations, such as advanced instrumentation, surgical skills simulation, software upgrades and other advancements into one dynamic platform.
Innovative Technologies: Intuitive Surgical continuously introduces technologies for surgical systems, buoying market optimism. Besides launching da Vinci X, an upgrade to its flagship Vinci Xi technology, the company has also been a constant outperformer in Mature and Growth procedures, especially in general and thoracic surgery. In the United States, the company has two cleared indications for da Vinci SP, and is in the process of designing trials for additional indications, including thoracic surgery and other surgical disciplines.
Intuitive Surgical launched its Extended Use Instruments in the United States and Europe in 2020. The company plans to unveil these instruments in other markets in 2021 and 2022, subject to regulatory requirements.
Downsides
Escalating Production Costs: The pandemic adversely affected global supply of semiconductors and other materials used in Intuitive Surgical’s products. Although the company is making efforts to secure the supplies required to ensure fulfilment of consumer demand, global shortages might lead to higher production costs or delay in production.
Risk of Procedure Adoption: Intuitive Surgical faces the risk of adoption of its procedures. 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 the same.
Zacks Rank & Other Key Picks
Currently, Intuitive Surgical carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks from the broader medical space are Henry Schein, Inc. (HSIC - Free Report) , IDEXX Laboratories, Inc. (IDXX - Free Report) and HealthEquity, Inc. (HQY - Free Report) .
Image: Bigstock
Intuitive Surgical (ISRG) Hits 52-Week High: What's Behind It?
Shares of Intuitive Surgical, Inc. (ISRG - Free Report) reached a new 52-week high of $1,058.93 on Aug 19, before closing the session marginally lower at $1,055.64.
Shares of the company have gained 52.1% in the past year compared with the industry’s 13.7% growth and the S&P 500's 30.9% rise.
The company is witnessing an upward trend in its stock price, prompted by its strength in robotics. Intuitive Surgical’s solid performance in the second quarter of 2021 and its innovative technologies buoy optimism. Rising production costs and risk of procedure adoption are major downsides.
Image Source: Zacks Investment Research
Let's delve deeper.
Key Growth Drivers
Strong Q2 Results: Intuitive Surgical’s better-than-expected results in second-quarter 2021 buoy optimism. The company’s revenue growth in the second quarter of 2021 reflected procedure growth and higher-than-expected system placements. Strong segmental performance was seen during the quarter. Intuitive Surgical recorded uptick in the da Vinci procedure volume in the second quarter. Expansion in both gross and operating margins bodes well. Per management, the quarter exhibited both the demand for superior quality minimally invasive procedures, along with a return to surgeries that were deferred during the pandemic.
Strength in Robotics: Intuitive Surgical’s robot-based da Vinci surgical system enables minimally invasive surgery that reduces the trauma associated with open surgery, thus raising market sentiment. The da Vinci System is powered by robotic technology, which has provided the company with solid exposure to medical mechatronics, robotics and AI for healthcare.
The company launched an upgrade to its flagship Vinci Xi technology – da Vinci X. The Xi suite is designed to seamlessly integrate future innovations, such as advanced instrumentation, surgical skills simulation, software upgrades and other advancements into one dynamic platform.
Innovative Technologies: Intuitive Surgical continuously introduces technologies for surgical systems, buoying market optimism. Besides launching da Vinci X, an upgrade to its flagship Vinci Xi technology, the company has also been a constant outperformer in Mature and Growth procedures, especially in general and thoracic surgery. In the United States, the company has two cleared indications for da Vinci SP, and is in the process of designing trials for additional indications, including thoracic surgery and other surgical disciplines.
Intuitive Surgical launched its Extended Use Instruments in the United States and Europe in 2020. The company plans to unveil these instruments in other markets in 2021 and 2022, subject to regulatory requirements.
Downsides
Escalating Production Costs: The pandemic adversely affected global supply of semiconductors and other materials used in Intuitive Surgical’s products. Although the company is making efforts to secure the supplies required to ensure fulfilment of consumer demand, global shortages might lead to higher production costs or delay in production.
Risk of Procedure Adoption: Intuitive Surgical faces the risk of adoption of its procedures. 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 the same.
Zacks Rank & Other Key Picks
Currently, Intuitive Surgical carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks from the broader medical space are Henry Schein, Inc. (HSIC - Free Report) , IDEXX Laboratories, Inc. (IDXX - Free Report) and HealthEquity, Inc. (HQY - Free Report) .
Henry Schein’s long-term earnings growth rate is estimated at 13.9%. The company presently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
IDEXX’s long-term earnings growth rate is estimated at 19.9%. It currently has a Zacks Rank #2.
HealthEquity’s long-term earnings growth rate is estimated at 14.5%. It currently carries a Zacks Rank #2.