Credit: Shutterstock photoIntuitive Surgical, Inc.ISRG is currently one of the top-performing stocks in the MedTech space. An impressive outlook for 2018 and strength in its flagship da Vinci system favor the stock.
Shares Up
Shares of Intuitive Surgical have rallied 63.3% against the industry 's decline of 6.3% in a year's time. The current level is also higher than the S&P 500 index's rise of 16.8%.
The stock currently has a Zacks Rank #2 (Buy).
What Makes the Stock an Attractive Pick?
Outlook Solid
For 2018, Intuitive Surgical forecasts procedure growth in the range of 14.5-16.5%, up from the previous band of 12-15%.
The company forecasts other income, which includes mostly interest income, between $70 million and $75 million, up from the previous guidance of $55 million and $60 million.
da Vinci Drives Growth
Intuitive Surgical's robot-based da Vinci surgical system enables minimally-invasive surgery that reduces trauma associated with open surgery. The system has been consistently driving the company's top line.
Earlier this year, the da Vinci Surgical System has been observed to cure patients diagnosed with inguinal hernia. The FDA clearance for the da Vinci SP surgical system for neurologic surgical procedures is a major development in the platform.
In the last reported quarter, da Vinci procedures grew approximately 18% year over year. For 2018, the company has strong opportunities in the U.S. general surgery market, particularly driven by procedures for hernia repair and colorectal surgery. Internationally as well, the company has significant opportunities in Japan, South Korea and China.
Other Developments
InTouch Health, a leading enterprise telehealth platform, recently signed a multi-year licensing service agreement with Intuitive Surgical. The alliance is likely to enable Intuitive Surgical's Internet of Medical Things (IoMT) network to connect to thousands of da Vinci surgical systems in medical institutions around the world on a single global network.
Moreover, the MedTech giant recently submitted a premarket notification to the FDA for its new flexible robotic-assisted, catheter-based platform, designed for obtaining lung biopsies.
Intuitive Surgical, Inc. Price and Consensus
Intuitive Surgical, Inc. Price and Consensus | Intuitive Surgical, Inc. Quote
Which Way Are Estimates Treading?
For the current quarter, the Zacks Consensus Estimate for earnings is pegged at $2.64. The same for revenues stands at $917 million, reflecting year-over-year growth of 13.8%.
For the current year, the Zacks Consensus Estimate for earnings is pinned at $10.74, showing growth of 19.5% from the previous year. The same for revenues is pegged at $3.69 billion, indicating a rise of 17.9%.
Other Key Picks
Other top-ranked stocks in the broader medical space are athenahealth ATHN , Masimo Corporation MASI and Veeva Systems VEEV .
athenahealth has a long-term expected earnings growth rate of 17.6%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Masimo's long-term earnings growth rate is projected at 14.8%. The stock carries a Zacks Rank #2.
Veeva Systems' long-term earnings growth rate is projected at 19.3%. The stock carries a Zacks Rank #2.
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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.
