Is Intuitive Surgical Stock a Buy?

Motley Fool01-31

Intuitive reported better-than-expected Q4 earnings, benefiting from the launch of its newest surgical system. Company guidance for 2025 appears muted and includes an expectation of some near-...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2507957018?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2025-01-31 20:12","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2507957018","market":"fut","top_or_hot":-1,"title":"Is Intuitive Surgical Stock a Buy?","media":"Motley Fool","content":"<div>\n<p>Intuitive reported better-than-expected Q4 earnings, benefiting from the launch of its newest surgical system.\n\n\n\n\n\n\n\nCompany guidance for 2025 appears muted and includes an expectation of some near-...</p>\n\n<a href=\"https://www.fool.com/investing/2025/01/31/is-intuitive-surgical-stock-a-buy/\">Source Link</a>\n\n</div>\n","source":"fool_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Intuitive Surgical Stock a Buy?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Intuitive Surgical Stock a Buy?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-01-31 20:12 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2025/01/31/is-intuitive-surgical-stock-a-buy/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Intuitive reported better-than-expected Q4 earnings, benefiting from the launch of its newest surgical system.\n\n\n\n\n\n\n\nCompany guidance for 2025 appears muted and includes an expectation of some near-...</p>\n\n<a href=\"https://www.fool.com/investing/2025/01/31/is-intuitive-surgical-stock-a-buy/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0058720904.USD","symbol_name":"联博国际健康护理基金A","start_time":0,"source_url":"https://www.fool.com/investing/2025/01/31/is-intuitive-surgical-stock-a-buy/","article_id":"2507957018","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2507957018","pubTimestamp":1738325520,"columns":[],"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"Intuitive reported better-than-expected Q4 earnings, benefiting from the launch of its newest surgical system.Company guidance for 2025 appears muted and includes an expectation of some near-term margin pressures.The stock's pricey valuation with shares trading at 75 times earnings may limit the upside for now.Intuitive Surgical  capped off a record-breaking 2024 with a blowout fourth-quarter earnings report. For the period ended Dec. 31, the medical technologies  giant delivered adjusted earnings per share  of $2.21, well above the $1.79 consensus Wall Street estimate. The $2.4 billion in quarterly revenue solidly beat expectations of $2.25 billion, up 25% year over year.Despite the impressive headline numbers, the stock sold off on the report as the initial market reaction likely focused on some relatively muted guidance. Nevertheless, shareholders can't complain too much as the stock is still up about 55% over the past year.Taking into account the company's latest update, the questi","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0058720904.USD":"联博国际健康护理基金A","LU0122379950.USD":"贝莱德世界健康科学A2","ISRG":"直觉外科公司","LU0097036916.USD":"贝莱德美国增长A2 USD","LU1061106388.HKD":"BGF WORLD HEALTHSCIENCE \"A2\" (HKDHDG) ACC","LU1951198990.SGD":"Natixis Thematics AI & Robotics Fund H-R/A SGD-H","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","LU0096364046.USD":"CT (LUX) I AMERICAN \"DU\" (USD) ACC","BK4504":"桥水持仓","IE00B19Z8X17.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH  \"AG\" (USD) ACC","LU0882574055.USD":"富达全球健康医疗A ACC","LU0823434583.USD":"BNP PARIBAS US GROWTH \"C\" (USD) ACC","IE00B19Z8W00.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH \"A\" INC","BK4548":"巴美列捷福持仓","LU1951200564.SGD":"Natixis Thematics AI & Robotics Fund R/A SGD","LU0354030511.USD":"ALLSPRING  U.S. LARGE CAP GROWTH \"I\" (USD) ACC","LU0823434740.USD":"BNP PARIBAS US GROWTH \"C\" (USD) INC","LU1983299246.USD":"SCHRODER ISF HEALTHCARE INNOVATION \"A\" (USD) ACC","IE00B5TLWC47.USD":"BNY MELLON LONG-TERM GLOBAL EQUITY \"B\" (USD) ACC","LU2112291526.USD":"BGF WORLD HEALTHSCIENCE \"A4\" (USD) INC","LU0114720955.EUR":"SUSTAINABLE GLOBAL HEALTH CARE \"A\" INC","LU0354030438.USD":"富国美国大盘成长基金Cl A Acc","LU0823416689.USD":"BNP PARIBAS HEALTH CARE INNOVATORS \"C\" (USD) ACC","LU1917777945.USD":"安联专题基金Cl AT Acc","LU1923623000.USD":"Natixis Thematics AI & Robotics Fund R/A USD","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","BK4534":"瑞士信贷持仓","LU1974910355.USD":"Allianz Thematica Cl AMg DIS USD","LU1366192091.USD":"ALLIANZ US EQUITY PLUS \"AM\" (USD) INC","BK4585":"ETF&股票定投概念","LU0079474960.USD":"联博美国增长基金A","LU2265009873.SGD":"Eastspring Investments - Global Growth Equity AS SGD-H","LU2106854487.HKD":"ALLIANZ THEMATICA \"AMG\" (HKD) INC","LU1023059063.AUD":"BGF WORLD HEALTHSCIENCE \"A2\" (AUDHDG) ACC","LU0289739699.SGD":"AB INTERNATIONAL HEALTH CARE PORTFOLIO \"A\" (SGD) ACC","LU1868837300.USD":"CT (LUX) I AMERICAN FUND \"9\" (USD) ACC","LU2023250504.SGD":"Allianz Thematica Cl AMg DIS H2-SGD","IE00BFXG0V08.USD":"BNY MELLON GLOBAL LEADERS \"B\" (USD) ACC","LU1804176565.USD":"EASTSPRING INV GLOBAL GROWTH EQUITY \"A\" (USD) ACC","LU2023250843.SGD":"Allianz Thematica Cl AT Acc H2-SGD","BK4082":"医疗保健设备","LU0390134368.USD":"FRANKLIN GLOBAL GROWTH \"A\" (USD) ACC","LU1057294990.SGD":"Blackrock World Healthscience A2 SGD-H","LU1868836914.USD":"CT (LUX) I AMERICAN \"3\" (USD) ACC","LU1868837136.USD":"CT (LUX) I AMERICAN \"8\" (USD) ACC","IE00BYQQ9H92.USD":"BNY MELLON GLOBAL LEADERS \"A\" (USD) ACC","BK4588":"碎股","LU1868836591.USD":"CT (LUX) I AMERICAN \"1U\"(USD) ACC","LU1868836757.USD":"CT (LUX) I AMERICAN FUND \"2\" (USD) ACC"},"translate_title":"Intuitive Surgical股票值得买入吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ISRG":1},"content_text":"Intuitive reported better-than-expected Q4 earnings, benefiting from the launch of its newest surgical system.\n\n\n\n\n\n\n\nCompany guidance for 2025 appears muted and includes an expectation of some near-term margin pressures.\n\n\n\n\n\n\n\nThe stock's pricey valuation with shares trading at 75 times earnings may limit the upside for now.\n\nIntuitive Surgical (ISRG 1.30%) capped off a record-breaking 2024 with a blowout fourth-quarter earnings report. For the period ended Dec. 31, the medical technologies (medtech) giant delivered adjusted earnings per share (EPS) of $2.21, well above the $1.79 consensus Wall Street estimate. The $2.4 billion in quarterly revenue solidly beat expectations of $2.25 billion, up 25% year over year.Despite the impressive headline numbers, the stock sold off on the report as the initial market reaction likely focused on some relatively muted guidance. Nevertheless, shareholders can't complain too much as the stock is still up about 55% over the past year.Taking into account the company's latest update, the question remains: Can the rally keep going in 2025? Let's discuss whether Intuitive Surgical stock is a buy now.A medtech leader with strong fundamentalsFor more than two decades, the da Vinci surgical system has represented the industry standard for minimally invasive robotic-assisted surgery. Through enhanced precision and control, often beyond the capability of a human hand, surgeons can deliver improved patient outcomes with significantly reduced rates of complications. Intuitive Surgical continuously updates its product features to cover an expanding scope of indications.The latest trends suggest the company is successfully executing its long-term strategy to expand its market share. In 2024, Intuitive grew its installed system base by 15% to 9,902, even accelerating from a 14% pace in 2023. The number of procedures performed climbed by an even stronger 17%, highlighting the technology's worldwide adoption.That dynamic is particularly important considering the company's razor-and-blade operating model. In this case, Intuitive commercializes not only the high-ticket priced da Vinci system to hospitals and surgical centers but also the necessary single-use tools and instrumentation that now represent more than half of total revenue.The result is a powerful growth flywheel to leverage earnings higher. Recurring revenue now make up 84% of the business, compared to 75% as recently as 2021.Image source: Getty Images.A potentially transitional year in 2025Perhaps the company's biggest development in the past year was the clearance by the Food and Drug Administration for Intuitive's newest-generation da Vinci 5. The system demonstrates a leap in technology by integrating a more digital interface with artificial intelligence (AI) and machine learning capabilities.The company notes the new model brings 150 design advancements and 10,000 times the computing power over the most widely installed da Vinci Xi platform. Following the initial launch with 362 da Vinci 5 placements last year, the expectation is that the platform will represent a growth driver for the next several years. Management has expressed optimism for 2025, targeting worldwide da Vinci procedures to increase between 13% to 16%.However, the company's guidance for adjusted gross margin of 67% to 68% of net revenue indicates a slight decline from 69.1% in 2024. This decrease reflects a shifting sales mix toward its new products and increased expenses associated with the da Vinci 5 rollout.Wall Street analysts are taking the middle ground, seeing 2025 as a transitional year for the company. The projected full-year revenue growth of 15% and a 9.3% increase in EPS would both mark a deceleration compared to 2024. The pivot may only be temporary -- Intuitive is positioned to benefit from an anticipated da Vinci replacement cycle heading into 2026 as customers upgrade their systems, which should support more robust company growth.Metric20242025 Estimate2026 EstimateRevenue (in billions)$8.35$9.57$11.1Revenue growth (YOY)17.2%14.6%16%Earnings per share (EPS)$7.34$8.02$9.43EPS growth (YOY)28.5%9.3%17.6%Data source: Yahoo! Finance. YOY = year over year.The big picture for investorsFollowing Intuitive Surgical's remarkable performance in 2024, the stock may be due for a breather, especially considering the tempered sales and earnings projections for 2025.At the current level, investors face reconciling Intuitive Surgical's objectively lofty valuation with shares trading at 72 times its consensus 2025 EPS as a forward price-to-earnings (P/E) ratio. While this premium earnings multiple can be justified by the company's industry leadership and positive long-term prospects, it may serve as a near-term headwind against a significant near-term share price appreciation without clear signals of accelerating growth.For existing shareholders, I believe the prudent move is to stay the course and hold your positions by staying focused on the company's long-term potential. Meanwhile, prospective investors sitting on the sidelines have some good reasons to remain there and consider more attractive opportunities elsewhere in the market.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.30.2","shortVersion":"4.30.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2507957018"}