Is Intuitive Surgical Stock Underperforming the Nasdaq?

ISRG -0.80% ^IXIC +0.82%

Sunnyvale, California-based Intuitive Surgical, Inc. (ISRG) develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality and accessibility of minimally invasive care. Valued at $205.8 billion by market cap, the company offers endoscopes, endoscopic retractors and disectors, scissors, scalpels, forceps, needle holders, electrocautery, ultrasonic cutters, and accessories during surgical procedures.

Companies worth $200 billion or more are generally described as “mega-cap stocks,” and ISRG definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the medical instruments & supplies industry. Intuitive Surgical excels in robotic-assisted surgery with its gold-standard da Vinci system, backed by a strong brand reputation, continuous R&D investment, and comprehensive surgeon training, driving user proficiency and patient outcomes.

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Despite its notable strength, ISRG slipped 6.8% from its 52-week high of $616, achieved on Jan. 23. Over the past three months, ISRG stock gained 21.1%, outperforming the Nasdaq Composite’s ($NASX) 7.8% gains during the same time frame.

In the longer term, shares of ISRG rose 10% on a YTD basis and climbed 5.9% over the past 52 weeks, underperforming NASX’s YTD gains of 20.2% and 21.1% returns over the last year.

To confirm the bullish trend, ISRG has been trading above its 50-day and 200-day moving averages since late October.

On Oct. 21, ISRG reported its Q3 results, and its shares surged 13.9% in the following trading session. Its revenue of $2.51 billion beat analyst expectations by 3.9%. The company’s adjusted EPS of $2.40 surpassed analyst estimates of $1.99.

In the competitive arena of medical instruments & supplies, Cooper Companies, Inc. (COO) has lagged behind the stock, with a 15.2% loss on a YTD basis and a 24.1% downtick over the past 52 weeks.

Wall Street analysts are reasonably bullish on ISRG’s prospects. The stock has a consensus “Moderate Buy” rating from the 29 analysts covering it, and the mean price target of $610.28 suggests a potential upside of 6.3% from current price levels.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com