How Is Intuitive Surgical's Stock Performance Compared to Other Healthcare Stocks?
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Sunnyvale, California-based Intuitive Surgical, Inc. (ISRG) develops, manufactures, and markets medical instruments. The company is a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery. With a market cap of $198 billion, Intuitive’s operations span 70+ countries in the Americas, Indo-Pacific and the EMEA region.
Companies worth $10 billion or more are generally described as "large-cap stocks," and Intuitive fits this bill perfectly. Given its dominance in the minimally invasive care space, its valuation above this mark is not surprising. Every 13.8 seconds, a surgeon starts a procedure using the company’s da Vinci system. Intuitive has nearly 10,00 da Vinci systems placed across the globe, and it works closely with its customers to help achieve better outcomes & experiences at affordable prices.
The company’s stock dropped nearly 10.3% from its all-time high of $616 achieved on Jan. 23. Meanwhile, ISRG stock has declined 3.6% in the past three months, outperforming the Health Care Select Sector SPDR Fund’s (XLV) 10.9% plunge.
In the longer term, ISRG has grown by over 5.8% on a YTD basis, whereas XLV declined by 3.6%. Moreover, shares of ISRG soared 37.7% over the past 52 weeks, outperforming the XLV's nearly 7% fall over the same time frame.
Moreover, the stock has been trading above its 200-day and 50-day moving averages since late April, underscoring its bullish uptrend.
ISRG stock prices rose 1.9% in the trading session after the release of its impressive Q1 earnings on Apr. 22. The company’s revenue of $2.3 billion improved 19.2% from the year-ago quarter, mainly driven by an increase in da Vinci procedure volume, higher da Vinci placements, and an increase in the installed base of systems. Additionally, its non-GAAP gross profit also rose 17% from the prior year’s quarter to $1.5 billion. Moreover, ISRG’s adjusted earnings climbed 20.7% year-over-year to $1.81 per share and surpassed the consensus estimates.
Its rival, West Pharmaceutical Services, Inc. (WST), declined 35.6% over the past year and on a YTD basis as well, underperforming Intuitive.
Among the 28 analysts covering the ISRG stock, the consensus rating is a “Moderate Buy.” Its mean price target of $592.36 suggests a 7.2% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.