Competition Is Heating Up, but Here's Why Intuitive Surgical Might Still Be the Smartest Bet in MedTech
Intuitive Surgical is a leader in the surgical robotics space, with a large installed base and strong recurring revenues.
Overview
Intuitive Surgical (NASDAQ: ISRG) can be hard to own because the stock is prone to deep drawdowns. It is in a drawdown right now, with the stock down roughly 40% from its early 2025 high. Even after that drop, the price-to-earnings ratio remains lofty at 42x. This is not a stock for the faint of heart.
However, if you are a growth-oriented investor, you shouldn't give up on Intuitive Surgical. Historically, the stock has recovered from deep drawdowns and gone on to reach higher highs. There's a difference this time around due to increasing competition from medical device peers such as Medtronic (NYSE: MDT) and Johnson & Johnson (NYSE: JNJ). But that probably shouldn't stop more aggressive investors. Here's why.
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Originally published at www.fool.com.