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Intuitive Surgical da Vinci X Surgical System Okayed by FDA
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Headquartered in Sunnyvale, CA, Intuitive Surgical Inc. (ISRG - Free Report) recently announced that the da Vinci X Surgical System, an upgrade to its flagship da Vinci Xi surgical platform, has been cleared by the FDA.
Notably, the latest regulatory approval follows a CE Mark, which was announced in April. However, the da Vinci X System will be available in the markets later this year.
The da Vinci surgical platform enables minimally invasive surgery for a lower price. The new system uses voice and laser guidance drape design that simplifies surgical procedures. However, the platform uses the same vision cart and surgeon console that are found on the existing product line (da Vinci Xi).
Per management, the da Vinci X System provides a ‘value-oriented option’ for hospitals with robotic-assisted surgical program.
Intuitive Surgical has been riding high on solid prospects on its da Vinci platform. In this regard, worldwide da Vinci procedure volumes grew approximately 18% year over year in the first quarter of 2017, thanks to stellar performances in the U.S. general surgery and worldwide urologic procedures. The company shipped 133 da Vinci surgical systems, up from 110 in the first quarter of 2016.
Share Price & Estimate Revision Trend
Shares of Intuitive Surgical rallied 0.9% to close at $914.43 following the news release.
For the majority of the last three months, the company’s share price has considerably outperformed the Zacks categorized Medical - Instruments sub-industry. The stock has rallied 23.4% over the last three months, outshining the sub-industry’s gain of 6%.
Notably, the stock has a market cap of $33.54 billion. Taking the stable performance of the stock into consideration, we expect Intuitive Surgical to scale higher in the coming quarters. The company’s positive long-term growth of 9.4% also holds promise.
The company’s estimate revision trend for the current year has been favorable. In the past 60 days, three analysts moved north, with one movement in the opposite direction. The magnitude of estimate revision increased around 2.7% to $20.23 per share over the same time frame.
Buoyed by the bullish analyst sentiments, the stock has a Zacks Rank #2 (Buy), signifying probabilities of outperformance in the near term.
Our Take
We are also upbeat about the fact that the global surgical robot market is expected to multiply at a CAGR of 20.03% over the next eight years (Grand View Research). Taking the bountiful prospects into consideration, Intuitive Surgical is expected to bolster its foothold in the niche space.
However, the company faces the risk of adoption of its new procedures. This is because each procedure needs to gain credibility.
Furthermore, broad usage of the company’s products requires exclusive training of surgical teams. As a result, market acceptance of the new products could be delayed. In fact, for the second quarter of 2017, the company expects procedure growth rate to slow down a little outside the U.S.
Other Key Picks
Other top-ranked stocks in the broader medical sector include Luminex Corporation , Inogen Inc. (INGN - Free Report) and Accelerate Diagnostics, Inc (AXDX - Free Report) . Notably, Luminex and Inogen sport a Zacks Rank #1 (Strong Buy), while Accelerate Diagnostics carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Luminex has an expected long-term adjusted earnings growth of almost 16.3%. The stock added roughly 6.9% over the last three months.
Inogen has a long-term expected earnings growth rate of 17.5%. The stock has a solid one-year return of around 82%.
Accelerate Diagnostics projects long-term adjusted earnings growth of almost 30%. The stock returned 114.9% over the last one year.
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Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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Intuitive Surgical da Vinci X Surgical System Okayed by FDA
Headquartered in Sunnyvale, CA, Intuitive Surgical Inc. (ISRG - Free Report) recently announced that the da Vinci X Surgical System, an upgrade to its flagship da Vinci Xi surgical platform, has been cleared by the FDA.
Notably, the latest regulatory approval follows a CE Mark, which was announced in April. However, the da Vinci X System will be available in the markets later this year.
The da Vinci surgical platform enables minimally invasive surgery for a lower price. The new system uses voice and laser guidance drape design that simplifies surgical procedures. However, the platform uses the same vision cart and surgeon console that are found on the existing product line (da Vinci Xi).
Per management, the da Vinci X System provides a ‘value-oriented option’ for hospitals with robotic-assisted surgical program.
Intuitive Surgical has been riding high on solid prospects on its da Vinci platform. In this regard, worldwide da Vinci procedure volumes grew approximately 18% year over year in the first quarter of 2017, thanks to stellar performances in the U.S. general surgery and worldwide urologic procedures. The company shipped 133 da Vinci surgical systems, up from 110 in the first quarter of 2016.
Share Price & Estimate Revision Trend
Shares of Intuitive Surgical rallied 0.9% to close at $914.43 following the news release.
For the majority of the last three months, the company’s share price has considerably outperformed the Zacks categorized Medical - Instruments sub-industry. The stock has rallied 23.4% over the last three months, outshining the sub-industry’s gain of 6%.
Notably, the stock has a market cap of $33.54 billion. Taking the stable performance of the stock into consideration, we expect Intuitive Surgical to scale higher in the coming quarters. The company’s positive long-term growth of 9.4% also holds promise.
The company’s estimate revision trend for the current year has been favorable. In the past 60 days, three analysts moved north, with one movement in the opposite direction. The magnitude of estimate revision increased around 2.7% to $20.23 per share over the same time frame.
Buoyed by the bullish analyst sentiments, the stock has a Zacks Rank #2 (Buy), signifying probabilities of outperformance in the near term.
Our Take
We are also upbeat about the fact that the global surgical robot market is expected to multiply at a CAGR of 20.03% over the next eight years (Grand View Research). Taking the bountiful prospects into consideration, Intuitive Surgical is expected to bolster its foothold in the niche space.
However, the company faces the risk of adoption of its new procedures. This is because each procedure needs to gain credibility.
Furthermore, broad usage of the company’s products requires exclusive training of surgical teams. As a result, market acceptance of the new products could be delayed. In fact, for the second quarter of 2017, the company expects procedure growth rate to slow down a little outside the U.S.
Other Key Picks
Other top-ranked stocks in the broader medical sector include Luminex Corporation , Inogen Inc. (INGN - Free Report) and Accelerate Diagnostics, Inc (AXDX - Free Report) . Notably, Luminex and Inogen sport a Zacks Rank #1 (Strong Buy), while Accelerate Diagnostics carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Luminex has an expected long-term adjusted earnings growth of almost 16.3%. The stock added roughly 6.9% over the last three months.
Inogen has a long-term expected earnings growth rate of 17.5%. The stock has a solid one-year return of around 82%.
Accelerate Diagnostics projects long-term adjusted earnings growth of almost 30%. The stock returned 114.9% over the last one year.
More Stock News: 8 Companies Verge on Apple-Like
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>