10 Innovative Healthcare Stocks to Watch in 2025

6. Intuitive Surgical, Inc. (NASDAQ:ISRG)

Number of Hedge Fund Holders: 95

Intuitive Surgical, Inc. (NASDAQ:ISRG) is a California-based company. It develops and markets technologies that help physicians and healthcare providers improve the quality and accessibility of minimally invasive care in the US and globally. With an Outperform rating and a price target of $641 for the shares, RBC Capital Markets reiterated its optimistic outlook on the stock on January 24. The company’s impressive 2024 fourth-quarter performance was well-received by analysts.

With 84% of its revenue coming from recurring services, Intuitive Surgical, Inc. (NASDAQ:ISRG) reported $8.4 billion in 2024, a 17% increase over 2023. While operating costs stayed within the lower end of their projected range, product margins increased as a result of increased shipment volumes, improved plant utilization, and cost savings in logistics, shipping, and components. This led to a 29% increase in net income over the prior year.

Intuitive Surgical, Inc. (NASDAQ:ISRG)’s revenue for the fourth quarter increased by 25% year over year to $2.41 billion. A 19% increase in da Vinci system placements, a higher average selling price, and a wider variety of purchases were the main drivers of the 36% growth in systems revenue. The corporation’s cash and investment holdings increased from $8.3 billion in the third quarter to $8.8 billion by the end of the year. This rise was caused by operating cash flow, which was somewhat offset by capital expenditures of $312 million.

To further its goal of minimizing illness and suffering globally, Intuitive Surgical, Inc. (NASDAQ:ISRG) announced on January 27 that it would donate $45 million to the Intuitive Foundation. The money will go toward teaching, research, and charitable endeavors that enhance patient outcomes. With this commitment, the business has given the Foundation more than $170 million since its founding in 2018, making Intuitive Surgical, Inc. (NASDAQ:ISRG) one of the best healthcare stocks to watch in the industry.