Intuitive Surgical (NASDAQ: ISRG)
September 16, 2012
Shares of Intuitive Surgical (NASDAQ: ISRG) have been struggling lately due to global economic concern; otherwise, there is no company-specific news that affects the downward pressure on this stock at this moment.
I have owned this stock since September 2011, as I liked the combination of medical exposure as well as its technology-intensive products. Since the global financial crisis in 2008, the shares of ISRG have advanced 400% or from $100/share in the early 2009 to around $500/share this summer in 2012. The shares almost have never pulled back in last three years except “recently.”
Is this a good opportunity to step in to buy the shares of ISRG?
Apple, Google, and Priceline are all competing for the $1000 mark in the near future and this ISRG stock should be a candidate, too. The shares almost hit $600 in May while popular Apple shares headed down into $500s after surpassing above $600 for the first time in its history.
ISRG is well known for its da Vinci Surgical System, which offers high definition 3D vision, advanced instrumentation, and Intuitive motion. This high-tech-intensive product is selling worldwide, including hospitals and medical schools. As more top-level institutions adapt the product, more and more customers would jump into the product.
The company’s earnings are intact. In fact, the company never missed any earnings in the last three years. Trading at 35x earnings, the shares may not be inexpensive but no other company can match the level of technology that is offered by ISRG. ISRG is a very innovative company, like Apple, and the da Vinci Surgical System will become a must-have item in the medical industry worldwide.
I believe this company will continue a steady growth over a long run and the shares of ISRG should head back to its all time high of $600 within next 12 months from the current price of $501.65 as of Sep. 16, 2012.
Akira Kondo is long ISRG.
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