Why Intuitive Surgical's Coronavirus Sell-off is an Incredible Buying Opportunity
The outbreak of coronavirus is affecting the economy in unexpected ways. Nearly all things digital got a dose of rocket fuel as households have been stuck at home, and many employees are forced to work remotely. But not all digital economy companies have been winners. Robotic surgery outfit Intuitive Surgical's (NASDAQ: ISRG) stock is down nearly 20% from recent highs as the company's da Vinci machine is often used in elective surgery procedures. In an effort to combat the spread of COVID-19, many hospitals and surgery centers have delayed elective surgeries to conserve supplies and allow room for the potential influx of infected patients.
In a nutshell, that means Intuitive's previous outlook for 2020 is likely to hit a speed bump during the first half of the year. However, for investors eyeing the long-term potential of technology as it makes inroads into the global healthcare system, the recent pullback is a gift.
Stock prices can gyrate wildly due to changes in short-term prospects for a company, but longer-term upside potential is driven by larger trends and how a business positions itself accordingly. As far as global healthcare goes, populations in developed economies are getting older, a trend that will likely hold for decades according to reports from the United Nations Department of Economic and Social Affairs.
Source Fool.com
