Behind Intuitive Surgical’s Recent Stock Performance



Intuitive Surgical’s recent stock uptrend

Intuitive Surgical (ISRG) is the leading player in the surgical robotics market. The company’s stock has been trending higher and was trading at its 52-week high of $382.2 on October 27, 2017. Its closing price on October 26 was $372.3.

ISRG stock has been trading higher than its 50-day moving average of $353.5 and its 200-day moving average of $316.4.

After the company announced its 3Q17 earnings results on October 19, 2017, ISRG stock rose ~4%. The company’s results exceeded Wall Street expectations, and it updated its fiscal 2017 guidance.

Intuitive Surgical has posted strong results over the past few quarters and continue to trend higher. Notably, the PowerShares QQQ (QQQ) fell ~0.37% on the day the company announced its 3Q17 results. QQQ holds ~0.59% of its total holdings in ISRG stock.

The YTD (year-to-date) returns of ISRG stock stand at a stellar 76%. The company has returned ~65% over the past year, surpassing the industry average as well as peers. As of October 27, peers Medtronic (MDT), Stryker (SYK) and Edwards Lifesciences (EW) have risen -4.1%, 30.9%, and -12.2%, respectively, in the past 12 months.

Factors driving the ISRG’s bullish trend

Intuitive Surgical keeps launching innovative and efficient products. It has been evolving with the changes in the industry and has positioned itself well amid the impending competition in this market.

The company launched its Da Vinci X robotics surgery systems in 2Q17, with the focus on meeting the needs of cost-conscious markets in emerging economies. The Da Vinci Sp was introduced recently and is a high-cost product.

The company has a strong growth strategy with expansion across diverse markets and segments. Meanwhile, the company’s robust business model, with the majority of its sales coming from recurring revenue stream, will likely keep yielding stable revenues.

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