5 Best Medical Device Stocks To Buy Now

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

Number of Hedge Fund Holders: 65

Intuitive Surgical, Inc. (NASDAQ:ISRG) offers surgical systems for minimally invasive approaches and core instrumentation for its surgical systems. It is headquartered in Sunnyvale, California, United States.

Intuitive Surgical, Inc. (NASDAQ:ISRG)’s bullish price targets see the share price at $270 per share, which is promising especially due to the fact that the company is a market leader in robotic surgery systems. To further woo investors, the firm has generated $1 billion in operating cash flow since 2016 and it currently has $4 billion in cash with no debt. With a forward P/E ratio of 4.56, the firm is also a growth stock. The firm also made it into Citi’s list of growth stocks during a recession in May 2022, with its cash flow having a 10 year CAGR of 20.6%.

65 of the 912 hedge funds polled by Insider Monkey for this year’s March quarter had invested in the company.

Intuitive Surgical, Inc. (NASDAQ:ISRG)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 4.4 million shares that are worth $1.3 billion.

ClearBridge Investments mentioned the firm in its Q4 2021 investor letter and stated:

“Intuitive Surgical, a maker of robotic instruments for soft tissue surgery, was another new health care addition. The market for soft tissue procedures is enormous, including those performed with the aid of the company’s DaVinci machines, whose three-dimensional imaging capabilities require smaller incisions, resulting in less nerve damage and bleeding and shorter patient stays. DaVinci machines are a $1 million-plus investment by hospitals that can be run continuously through the day, allowing for a greater number of procedures with less physician fatigue. Surgeons are trained on the device from medical school and residency on up. Combining the related training and supply chains, these purchases are very sticky. We see the opportunity for Intuitive Surgical to benefit from more indications for the devices, procedure growth, and greater sales in hospitals and surgical centers.”