ISRG is well
poised for growth on improving adoption of da Vinci Surgical System
and strong international presence.
Shares of this Zacks Rank #3 (Hold) company have gained 34.4%
compared with the
industry‘s 9.4% growth in a year’s time. The S&P 500 Index
has rallied 29% in the same time frame.
system along with related instruments and accessories. The da Vinci
surgical system is an advanced robot-assisted surgical system. It
anticipates earnings to improve 10% over the next five years. It
beat earnings estimates in three of the trailing four quarters and
missed once, with the average surprise being 18.6%.
What’s Favoring the Stock?
reduces risks associated with open surgery. The company continues
to gain from this system, which in turn bolsters overall
In first-half 2021,
significantly and the momentum continued in the third quarter, with
the installed base growing 11% year over year. On the back of
stronger recovery in procedures so far, the company currently
projects procedure growth of 27-29% in 2021 (narrowed from the
previously guided range of 27-30%) due to the impact of the Delta
variant and third-quarter performance.
With respect to digital
capabilities, the company remains focused on improving the
ecosystem. During the second quarter,
to engage customers in data analytics and opportunity analysis for
surgical programs, which is the cornerstone of its Your Data, Your
Truth analytics efforts. The company has made advancements with the
launch of My Intuitive, which is a mobile app enabling surgeons to
has been of great help amid this public health crisis.
During the second quarter, the company introduced this app to
the first users in
crucial part of its overall learning initiatives. Cumulatively,
these programs trained above 2,200 care team members in the second
quarter, thereby demonstrating organizational strength and
localizing programs, and responding with agility to pandemic-driven
year-over-year basis. This was driven by substantial improvement
(30%) in procedure volume on account of higher prostatectomy
procedures and earlier-stage growth in kidney cancer procedures,
general surgery, gynecology, and thoracic surgery. Outside
compared with 79 in the prior-year period. Of these, 47 were in
What’s Weighing on It?
The COVID-19 pandemic adversely
affected the global supply of semiconductors and other materials
been making every effort to secure the supply required for ensuring
the fulfillment of consumer demand, global shortages might result
in higher output costs or delay in production.
witnessing an upward estimate revision trend for 2021. In the past
60 days, the Zacks Consensus Estimate for its earnings has moved
0.4% north to
The Zacks Consensus Estimate for fourth-quarter 2021 revenues
is pegged at
year-ago reported number.
Stocks to Consider
trailing four quarters, with the average being 9.02%. The company
currently carries a Zacks Rank of 2 (Buy). You can see
the complete list of today’s
at 14%. The company’s earnings yield of 3.7% compares favorably
with the industry’s (3.6%).
McKesson beat earnings estimates in each of the trailing four
quarters, with the average being 19.9%. The company currently
carries a Zacks Rank #2.
McKesson’s long-term earnings growth rate is estimated at
8.9%. The company’s earnings yield of 9.9% compares favorably with
the industry’s 3.2%.
trailing four quarters, with the average being 5.5%. The company
currently carries a Zacks Rank of 2.
estimated at 11.3%. The company’s earnings yield of 8.9% compares
favorably with the industry’s 3.3%.
5 Stocks Set to Double
Each was handpicked by a
to gain +100% or more in 2021. Previous recommendations have soared
+143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under
radar, which provides a great opportunity to get in on the ground
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