Personal Finance

3 Reasons Intuitive Surgical, Inc. Stock Could Fall

ISRG PE Ratio (TTM) Chart

Early investors in Intuitive Surgical (NASDAQ: ISRG) have enjoyed one heck of a profitable run. The company's stock is up more than 7,650% since its IPO in 2000. That's a strong enough performance to turn a few thousand dollars into a retirement nest egg. More recently, the company's winning streak extended into 2016 with shares rising more than 15%.

While there are plenty of reasons to believe that Intuitive's winning streak can continue, shareholders ( like me ) always need to keep an eye on the bear case, too. With that in mind, here's a look at three reasons to believe that Intuitive's stock could fall from here.

ISRG PE Ratio (TTM) Chart

ISRG PE Ratio (TTM) data by YCharts

If Intuitive fails to exceed the market's growth expectations, then its trailing P/E ratio of 35 could be viewed as far too high. If true, Intuitive's stock could be in for a nasty fall.

I'm still bullish

Despite all of these potential negatives, I remain quite bullish about the company's long-term prospects. In addition, I'm a firm believer that winners tend to keep on winning, so I have no plans to trim my position anytime soon.

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Brian Feroldi owns shares of Intuitive Surgical.The Motley Fool owns shares of and recommends Intuitive Surgical. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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