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With a market cap of $174.7 billion, Intuitive Surgical, Inc. (ISRG) operates in the medical technology industry, specializing in robotic-assisted surgical systems. The Sunnyvale, California-based company provides advanced diagnostic tools and comprehensive support services to enhance healthcare delivery worldwide.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks and Intuitive Surgical fits this criterion perfectly. ISRG’s flagship product, the da Vinci Surgical System, facilitates minimally invasive surgeries, while its Ion endoluminal system expands its offerings into diagnostic procedures, particularly lung biopsies.
Despite a slight pullback from its 52-week high of $493.97, reached on Aug. 23, shares of Intuitive Surgical have surged 22.1% over the past three months, significantly outperforming the broader Nasdaq Composite's ($NASX) 5.8% gain during the same period.
Longer term, ISRG has shown robust performance with a 46% rise YTD, far exceeding NASX's 18% increase over the same period. Over the past 52 weeks, ISRG has soared 58.7%, surpassing the NASX's 27% gains.
To confirm the bullish price trend, ISRG has been trading above its 200-day moving average since November last year and 50-day moving average since early May with minor fluctuations.
Intuitive Surgical’s outperformance can be attributed to strong global procedure volume growth, the successful launch of the next-generation da Vinci 5 platform, improved operating margins, and an expanding installed base. Moreover, the stock surged 9.3% following its better-than-expected Q2 earnings report on Jul. 18, driven by a 17% increase in worldwide procedure volumes. The positive investor sentiment was also fueled by strong demand for its surgical robots and optimism about the broader recovery in medical procedures.
In comparison, rival Medtronic plc (MDT) has underperformed ISRG, with shares gaining 7.9% over the past 52 weeks and 7.5% on a YTD basis.
Despite the biotechnology company's recent outperformance, analysts remain cautiously optimistic about the stock's prospects. Among the 24 analysts covering the stock, there is a consensus rating of “Moderate Buy,” with the stock currently trading above its mean price target of $473.83.
On the date of publication, Sohini Mondal 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.
