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Here's Why You Should Retain Intuitive Surgical (ISRG) Stock Now
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Intuitive Surgical, Inc. (ISRG - Free Report) is well-poised for growth in the coming quarters, courtesy of its strength in robotics. The optimism led by solid fourth-quarter 2022 and its progress on the artificial intelligence (AI) front is expected to contribute further. The risk of procedure adoption and stiff competition persist.
Over the past year, this Zacks Rank #3 (Hold) stock has lost 7.9% compared with the 14.9% decline of the industry and the S&P 500’s 7.5% fall.
The renowned provider of minimally invasive care and the pioneer of robotic-assisted surgery has a market capitalization of $89.98 billion. It projects 11.9% growth for the next five years and expects to maintain its strong performance. Intuitive Surgical’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed the same in the other two, with the average earnings surprise being 2.4%.
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 the healthcare space. The company has also launched da Vinci X, an upgrade to its flagship Vinci Xi technology.
Progress on the AI Front: We are upbeat about the growing adoption of minimally-invasive robot-assisted surgeries, self-automated home-based care, the use of information technology for quick and improved patient care and the shift of the payment system to a value-based model. These indicate the high prevalence of AI in the MedTech space.
Per Intuitive Surgical’s management, the rise of medical mechatronics, powerful computing, improved sensing, microfabrication and molecular imaging has enabled new approaches to old problems. AI has been enhancing Intuitive Surgical’s product portfolio with clinical applications, diagnostic support, operational efficiency, electronic health record systems, practice workflows and supply chain management.
Strong Q4 Results: Intuitive Surgical’s solid fourth-quarter 2022 results buoy our optimism. The company’s displayed strong segmental performance in the quarter under review. It witnessed growth in da Vinci procedure volume in the fourth quarter.
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, the wide use of the company’s products requires the training of surgical teams. Market acceptance could be delayed by the time required to complete such training.
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, the da Vinci System, 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 2023. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 1.3% south to $5.27.
The Zacks Consensus Estimate for the company’s first-quarter 2023 revenues is pegged at $1.58 billion, suggesting a 6.5% improvement from the year-ago quarter’s reported number.
This compares to our first-quarter 2023 revenue estimate of $1.58 billion, suggesting a 6% uptick from the year-ago quarter’s reported number.
Key Picks
Some better-ranked stocks in the broader medical space are Hologic, Inc. (HOLX - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and Masimo Corporation (MASI - Free Report) .
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic has gained 8.3% against the industry’s 14.9% decline in the past year.
Henry Schein, sporting a Zacks Rank #1 at present, has an estimated long-term growth rate of 8.1%. HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%.
Henry Schein has lost 6.1% compared with the industry’s 4.5% decline over the past year.
Masimo, flaunting a Zacks Rank #1 at present, has an estimated growth rate of 3.5% for 2023. MASI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 9%.
Masimo has gained 33.7% against the industry’s 14.9% decline over the past year.
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Here's Why You Should Retain Intuitive Surgical (ISRG) Stock Now
Intuitive Surgical, Inc. (ISRG - Free Report) is well-poised for growth in the coming quarters, courtesy of its strength in robotics. The optimism led by solid fourth-quarter 2022 and its progress on the artificial intelligence (AI) front is expected to contribute further. The risk of procedure adoption and stiff competition persist.
Over the past year, this Zacks Rank #3 (Hold) stock has lost 7.9% compared with the 14.9% decline of the industry and the S&P 500’s 7.5% fall.
The renowned provider of minimally invasive care and the pioneer of robotic-assisted surgery has a market capitalization of $89.98 billion. It projects 11.9% growth for the next five years and expects to maintain its strong performance. Intuitive Surgical’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed the same in the other two, with the average earnings surprise being 2.4%.
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 the healthcare space. The company has also launched da Vinci X, an upgrade to its flagship Vinci Xi technology.
Progress on the AI Front: We are upbeat about the growing adoption of minimally-invasive robot-assisted surgeries, self-automated home-based care, the use of information technology for quick and improved patient care and the shift of the payment system to a value-based model. These indicate the high prevalence of AI in the MedTech space.
Per Intuitive Surgical’s management, the rise of medical mechatronics, powerful computing, improved sensing, microfabrication and molecular imaging has enabled new approaches to old problems. AI has been enhancing Intuitive Surgical’s product portfolio with clinical applications, diagnostic support, operational efficiency, electronic health record systems, practice workflows and supply chain management.
Strong Q4 Results: Intuitive Surgical’s solid fourth-quarter 2022 results buoy our optimism. The company’s displayed strong segmental performance in the quarter under review. It witnessed growth in da Vinci procedure volume in the fourth quarter.
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, the wide use of the company’s products requires the training of surgical teams. Market acceptance could be delayed by the time required to complete such training.
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, the da Vinci System, 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 2023. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 1.3% south to $5.27.
The Zacks Consensus Estimate for the company’s first-quarter 2023 revenues is pegged at $1.58 billion, suggesting a 6.5% improvement from the year-ago quarter’s reported number.
This compares to our first-quarter 2023 revenue estimate of $1.58 billion, suggesting a 6% uptick from the year-ago quarter’s reported number.
Key Picks
Some better-ranked stocks in the broader medical space are Hologic, Inc. (HOLX - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and Masimo Corporation (MASI - Free Report) .
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic has gained 8.3% against the industry’s 14.9% decline in the past year.
Henry Schein, sporting a Zacks Rank #1 at present, has an estimated long-term growth rate of 8.1%. HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%.
Henry Schein has lost 6.1% compared with the industry’s 4.5% decline over the past year.
Masimo, flaunting a Zacks Rank #1 at present, has an estimated growth rate of 3.5% for 2023. MASI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 9%.
Masimo has gained 33.7% against the industry’s 14.9% decline over the past year.