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Based in Sunnyvale, California, Intuitive Surgical, Inc. (ISRG) is a leading force in the medical technology industry, renowned for its innovative robotic-assisted surgical systems. With a market cap of $148.13 billion, ISRG is one of the most influential companies in the healthcare sector. Competing intensely with other medical technology giants, Intuitive Surgical's primary rivals include Medtronic (MDT), known for its comprehensive range of medical devices and solutions.
Companies valued at $10 billion or more are considered "large-cap" stocks, and Intuitive Surgical fits this criterion perfectly. Renowned for its groundbreaking advancements in robotic-assisted surgery, ISRG is at the forefront of medical innovation with its da Vinci Surgical System.
Shares of ISRG have climbed to a new high of $420.57 in the last trading session, with ISRG up 6.4% over the last 3 months. Over this same period, the S&P 500 Index’s ($SPX) has gained 3.7%, so ISRG stands out as an outperformer.
Longer term, ISRG is up 23.8% on a YTD basis, and the shares are now holding onto a solid gain of 35.9% over the past 52 weeks. In comparison, the S&P 500 has gained 12.1% in 2024 and 25.3% over the past year.
To confirm the bullish price trend, ISRG has been trading above its 200-day moving average since mid-November 2023 and its 50-day moving average since mid-May.
Intuitive Surgical's recent strong performance can be attributed to its robust Q1 results released on Apr. 18. Following the earnings release, ISRG shares saw a marginal decline, but they have seen an uptrend since then. The company's total revenue surged 11.4% year over year to $1.9 billion, driven by robust growth in its instruments and accessories segment, including a 16% increase in da Vinci procedure volumes and a remarkable 90% rise in Ion procedure volumes. Non-GAAP EPS saw a 22% year-over-year jump to $1.50 per share, surpassing analyst estimates by approximately 6%.
Additionally, the FDA-approved da Vinci 5, featuring enhanced AI technology and significantly increased computing power, provides surgeons with improved real-time feedback. By the quarter's end, eight of these advanced systems had been deployed, further solidifying ISRG’s leadership in medical technology and contributing to its stock outperformance.
To emphasize the stock’s overall outperformance, Medtronic has underperformed its rival MDT, which has gained only 2.1% on a YTD basis.
Given its robust price performance, analysts are optimistic about ISRG's prospects. The stock has a consensus rating of "Moderate Buy" from 23 analysts in coverage. The mean price target of $422.68 reflects an 1.2% premium over current levels.
On the date of publication, Rashmi Kumari 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.
