10 Stocks That Will Change the World

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

Number of Hedge Fund Holders In Q1 2024: 79

Intuitive Surgical, Inc. (NASDAQ:ISRG) is the world leader when it comes to medical robotics. The firm enjoys a dominant position in an industry, that like the software sector, also benefits from recurring revenue. Since the products that are sold by firms like Intuitive Surgical, Inc. (NASDAQ:ISRG) are quite expensive and are intended to last for years, hospitals and other institutions that buy them often turn to the manufacturer for maintenance and upgrades. This means that Intuitive Surgical, Inc. (NASDAQ:ISRG)’s customer growth also leads to a higher long term revenue base that’s stimulated by recurring revenue. Its DaVinci platform is one of the few of its kind in the world, which allows Intuitive Surgical, Inc. (NASDAQ:ISRG) to enjoy a competitive moat in the form of high barriers to entry. However, given the recent trends in robotics, the firm has to maintain its competitive edge or risk losing out to competitors.

Baron Funds mentioned Intuitive Surgical, Inc. (NASDAQ:ISRG) in its Q2 2024 investor letter. Here is what the firm said:

“Intuitive Surgical, Inc. manufactures the da Vinci Surgical System, a robotic surgical system used for minimally invasive procedures. The stock performed well due to excitement about the company’s new robotic surgical system, the da Vinci 5, which oers enhanced imaging, force feedback and other improvements. We continue to believe Intuitive has durable competitive advantages and will remain the market leader in robotic surgery. We think the company has a long runway for growth as more procedures are performed with the company’s equipment.”