5 Best Medical Technology Stocks To Buy Now

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

Number of Hedge Fund Holders: 78

Intuitive Surgical, Inc. (NASDAQ:ISRG) is a U.S.-based corporation focused on the development, manufacturing, and marketing of robotic products aimed at enhancing clinical outcomes for patients through minimally invasive surgery, with its notable contribution being the da Vinci Surgical System.  The da Vinci system is made up of a surgeon’s console, a patient-side cart equipped with four robotic arms, a 3D vision system, and proprietary instruments.

In Q3 2023, Intuitive Surgical Inc (NASDAQ:ISRG) reported revenue of $1.74 billion, reflecting a 12% rise compared to $1.56 billion in the third quarter of 2022. This increase in revenue was primarily attributed to a surge in da Vinci procedure volume and an expansion of the installed base of systems. Global da Vinci procedures witnessed a growth of approximately 19% in comparison to the third quarter of 2022. The compound annual growth rate from the third quarter of 2019 to the third quarter of 2023 stood at approximately 17%. In addition, the company installed 312 da Vinci surgical systems during the quarter, up from 305 in the third quarter of 2022.

At the end of the third quarter of 2023, 78 hedge funds in the database of Insider Monkey held stakes worth $5.05 billion in Intuitive Surgical, Inc. (NASDAQ:ISRG), compared to 68 in the preceding quarter worth $3.49 billion.

Here’s what RiverPark Advisors said about Intuitive Surgical, Inc. (NASDAQ:ISRG) in its Q1 2023 investor letter:

“Intuitive Surgical, Inc. (NASDAQ:ISRG): ISRG shares were a top detractor in the quarter despite 4Q results largely in line with expectations. The company used the quarterly release to define the timeline of upcoming products including its next-gen platform, now expected next year. The market was disappointed by this timing.

Intuitive is the pioneer and clear leader in robotic surgery and remains one of our most compelling long-term growth opportunities. The company’s products address a massive market with very low current penetration, and the company has a strong moat. Its major competitors, J&J and Medtronic, are facing large delays (to at least 2024) in introducing their platforms as the FDA approval process has become more difficult. These delays give Intuitive more time to place systems, train surgeons and launch new products, extending its competitive advantage. The company’s “Extended Use Program” aims to make its tools more price-competitive to traditional non-robotic procedures, which increases the company’s moat.”