Intuitive Surgical Inc. ISRG has been gaining from the adoption of da Vinci system, increasing procedure volumes, continuous innovations and a solid recurring revenue base. Currently, it has a market capitalization of approximately $59.92 billion.
In a year’s time, this Zacks Rank #3 (Hold) stock has rallied 31.5% compared with the industry’s 9.1% growth.
Why Should You Retain?
Intuitive Surgical’s da Vinci surgical system enables minimally-invasive surgery, which reduces the trauma associated with open surgery. Powered by robotic technology, this surgical system has provided the company with a solid exposure to medical mechatronics, robotics and Artificial Intelligence for healthcare. The platform bolstered Intuitive Surgical’s foothold in the Cardiac Surgery, Colorectal Surgery, General Surgery, Gynecologic Surgery, Head & Neck Surgery, Thoracic Surgery and Urologic Surgerymarkets.
The company also launched an upgrade to its flagship Vinci Xi technology – da Vinci X. Notably, the Xi suite is designed to seamlessly integrate future innovationssuch as advanced instrumentation, surgical skills simulation, software upgrades, and other advancements into one dynamic platform.
Meanwhile, the da Vinci Surgical System has been observed to cure patients diagnosed with inguinal hernia.
In the fourth quarter of 2018, da Vinci procedures grew approximately 19% over the fourth quarter of last year. Mature procedure growth in the United States, including prostatectomy and hysterectomy, has been robust. In Japan, procedures grew above 40% in the second half of 2018. European procedure performance has been in line, with solid growth in the United Kingdom and France.
For 2018, the company has strong prospects in the U.S. general surgery market, particularly driven by procedures for hernia repair and colorectal surgery. Internationally, the company has significant opportunities in Japan, South Korea and China.
What’s Deterring the Stock?
Intuitive Surgical used to enjoy a monopoly stature in the market for robots used in abdominal surgery since the launch of its flagship device called da Vinci back in 2000. However, competition for the company intensified following the regulatory approval of Transenterix's surgical robot for abdominal surgery in 2017.
Which Way Are Estimates Trending?
The Zacks Consensus Estimate for first-quarter 2019 earnings is pegged at $2.67, mirroring 9.4% growthon a year-over-year basis. The same for revenues stands at $971.9 million, reflecting growth of 14.7% year over year.
For 2019, the Zacks Consensus Estimate for revenues is pinned at $4.30billion, indicating 15.4% growth. The same for adjusted earnings for 2019 is pegged at $12.01, showcasing a 9.3% rise year over year.
Intuitive Surgical, Inc. Price and Consensus
Intuitive Surgical, Inc. Price and Consensus | Intuitive Surgical, Inc. Quote
A few better-ranked stocks in the broader medical space are Surmodics, Inc. SRDX, Abbott Laboratories ABTand Cardiovascular Systems, Inc. CSII.
Surmodics has a long-term expected earnings growth rate of 10%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Abbott’s long-term earnings growth rate is projected at 11.7%. The stock carries a Zacks Rank #2 (Buy).
Cardiovascular Systems topped the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being77.1%. The stock has a Zacks Rank of 1.
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