Though it shares were struggling amid a market downturn Tuesday, Intuitive Surgical sits in a flat base with a Relative Strength Rating at a high level on its weekly chart. For that reason, Intuitive Surgical is an IBD 50 Stock To Watch.
Down for four straight sessions, Intuitive Surgical stock fell roughly 4% amid broader market weakness Tuesday. Shares are in a late stage base with a buy point of 616 on a weekly chart. They managed to remain in the base despite Tuesday's drop of more than 3%.
Intuitive Surgical has a blue dot on its weekly chart, showing its relative strength line is at a new high. Recent downward action puts the stock right at its 10-week moving average, according to IBD MarketSurge. Investors will want to see if shares can bounce off the line in coming sessions.
Intuitive Surgical Stock Falls On Tariff Risk
Shares rallied ahead of fourth-quarter results on Jan. 23 to an all-time high but fell to form the flat base. Sales grew 25% to $2.4 billion while earnings per share of $2.21 rose 38% from the prior year — the highest percentage increase in the past eight quarters.
But the company warned that President Donald Trump's tariffs could hurt its sales outlook for its Da Vinci robotic system — a gold standard in robotics-assisted surgery. Da Vinci systems ship worldwide and the company posted a midpoint sales growth outlook of 15% for the product in 2025.
Analysts estimate earnings will grow 10% in 2025 to $8.05 per share and 18% in 2026 to $9.47 per share.
Ideal Composite Rating, High Earnings Rank
Intuitive Surgical makes medical robots that assist in surgery. The stock holds an ideal Composite Rating of 99 while the EPS Rating is also impressive at 95. The stock also ranks among the top 8% for its relative performance over the past 52 weeks.
Intuitive Surgical stock also ranks first in the medical systems and equipment companies group, according to IBD Stock Checkup.
Mutual funds own 53% of outstanding shares. More funds have been net buyers of the stock over the past seven quarters. But that has not been the case in the more recent 13 weeks. Intuitive Surgical stock holds an Accumulation/Distribution Rating of C+.
How Invested In The Stock Market Should You Be Right Now?
In the Investor's Business Daily mutual fund index, the Franklin Growth Fund (FKGRX) and the American Century Focused Dynamic Growth Fund (ACSFX) hold shares of Intuitive Surgical.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.