trxc

3 Reasons Intuitive Surgical, Inc. Stock Could Fall

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.

10 stocks we like better than Intuitive Surgical

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Intuitive Surgical wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of January 4, 2017

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.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.