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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 robust demand for the much coveted da Vinci platform currently favor the stock.

Price Performance

In a year’s time, shares of Intuitive Surgical have rallied 23.9% against the industry's 8.2% growth. The current level is also higher than the S&P 500 index’s gain of 1.9%.

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 range of 70.5-71.5% of net revenues.

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

da Vinci Drives Growth

Intuitive Surgical’s robot-based da Vinci surgical system enables minimally-invasive surgery, which reduces the trauma associated with open surgery. This system has been consistently driving the company’s top line.

In the third quarter of 2018, 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 current quarter, the Zacks Consensus Estimate for earnings is pegged at $2.96, reflecting a year-over-year growth of 16.5%. The same for revenues stands at $1.02 billion, mirroring 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%.

Key Picks

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

Integer Holdings has an earnings growth rate of 31.2% for the next quarter and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Surmodics’ long-term earnings growth rate is projected at 10%. The stock carries a Zacks Rank of 2.

Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock carries a Zacks Rank #2.

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