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What’s Driving Intuitive Surgical’s Recent Stock Performance?

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Stock performance

Intuitive Surgical (ISRG) closed at $938.54 on July 13, 2017. It has a 50-day moving average of $928.95 and a 200-day moving average of $792.94. ISRG stock gained more than 5% after the company released its 1Q17 earnings on April 18, 2017. This was due to the company’s higher-than-expected earnings results and the upward revision to its full-year 2017 guidance. Since the company’s 1Q17 earnings release, ISRG stock has risen ~22%. It has returned ~38.3% over the last year. The stock outperformed the market, which is represented by the S&P 500 Index. The S&P 500 Index returned ~15% during the same period. Issues around da Vinci Xi Surgical System sales led to the decline in the company’s stock price. But the company has witnessed strong growth due to its strong product profile and strategic initiatives.

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As of July 13, 2017, Intuitive Surgical’s stock was trading ~35.0% above its 52-week low of $610.7 on December 7, 2016. The stock was trading ~6.7% below its 52-week high of $963.5 on June 22, 2017. The stock has been on a bullish trend recently riding high on the recent launches and the strong earnings performance. For more, read Why Intuitive Surgical Is Riding on All-Time Highs.

With a long-term perspective, the company is expected to see an uptrend driven by the company’s sales growth on the back of recent promising launches of da Vinci X and da Vinci Sp and the company’s strong market position. Competition, however, remains a risk.

Stock performances for ISRG’s peers

As of July 13, 2017, Intuitive Surgical’s peers Medtronic (MDT), Stryker (SYK), and TransEnterix (TRXC) have generated returns of -0.62%, 17.1%, and -40.9%, respectively, over the last 12 months.

The iShares Russell 1000 Growth ETF (IWF) is one of the major ETFs to consider if you’re interested in ISRG. Intuitive Surgical accounts for ~0.30% of IWF’s total holdings.

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