Does Intuitive Surgical Have Room to Run After Earnings?
Intuitive Surgical (NASDAQ: ISRG) specializes in robotic surgery and minimally invasive techniques, with its well-known Da Vinci surgical system. The healthcare company also began selling Ion endoluminal systems in the most recent quarters, which allow for minimally invasive lung biopsies. It has delivered sustained rapid growth, with revenue averaging a compound annual growth rate (CAGR) of 16% and net profits growing 24% annually over the past three years, which has created substantial optimism around the stock.
That said, heading into a potential recession, it might not be a great time to own growth stocks with hefty valuations. Intuitive Surgical has returned more than four times the S&P and S&P healthcare indexes since the market bottom in May 2009, so it makes sense to assess the continued validity of a long position.
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Source Fool.com
