/Intuitive%20Surgical%20Inc%20location%20sign-by%20Sundry%20Photography%20via%20iStock.jpg)
Valued at $195.1 billion by market cap, Intuitive Surgical, Inc. (ISRG) is a leading provider of advanced medical technology specializing in robotic-assisted surgical systems. Headquartered in Sunnyvale, California, the company is renowned for its innovative da Vinci Surgical System, which enables minimally invasive surgeries across various specialties.
Shares of Intuitive Surgical have outperformed the broader market considerably over the past year. The stock has gained 68.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31.3%. In 2024, ISRG stock is up 59%, surpassing SPX’s 25.5% rise on a YTD basis.
Zooming in further, ISRG outperformed the SPDR S&P Health Care Equipment ETF (XHE). The exchange-traded fund has gained 23.9% over the past year and 10.5% on a YTD basis.
Intuitive Surgical jumped over 6% in pre-market trading after delivering robust Q3 earnings results on Oct. 17. Revenue for the quarter reached $2.04 billion, a 17% annual increase, while non-GAAP net income rose to $669 million, or $1.84 per share, up from $524 million, or $1.46 per share, in the same period last year.
Additionally, in October, the company secured regulatory clearance in South Korea for its da Vinci 5 surgical system, expanding its approved applications across multiple specialties, including urology, gynecology, and thoracic surgery.
For the current fiscal year, ending in December, analysts expect Intuitive Surgical’s EPS to grow 34.6% to $5.45 on a diluted basis. The company’s earnings surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.
Among the 26 analysts covering ISRG stock, the consensus is a “Moderate Buy.” That’s based on 16 “Strong Buy” ratings, two “Moderate Buys,” and eight “Holds.”
This configuration has been consistent over the past three months.
On Nov. 19, Erste Group analyst Hans Engel upgraded Intuitive Surgical to “Buy” from Hold.
The mean price target is $545.04, representing a 1.6% premium compared to ISRG’s current price levels. The Street-high price target of $643 suggests an upside potential of 19.8%.
