Core Viewpoint - Intuitive Surgical, Inc. (ISRG) has experienced a stock return of -5.6% over the past month, underperforming the Zacks S&P 500 composite's +3.1% and the Zacks Medical - Instruments industry's -5.4% [1] Earnings Estimate Revisions - The consensus earnings estimate for the current quarter is $1.99 per share, reflecting a year-over-year increase of +8.2% [4] - The consensus earnings estimate for the current fiscal year is $8.17, indicating a year-over-year change of +11.3%, remaining unchanged over the last 30 days [4] - For the next fiscal year, the consensus earnings estimate is $9.18, representing a +12.4% change from the previous year, with a slight decrease of -0.2% over the past month [5] - Intuitive Surgical has a Zacks Rank 4 (Sell), indicating potential underperformance in the near term due to recent changes in earnings estimates [6] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $2.41 billion, showing a year-over-year increase of +18.2% [10] - For the current fiscal year, the sales estimate is $9.78 billion, indicating a +17.1% change, while the next fiscal year's estimate is $11.14 billion, reflecting a +14% change [10] Last Reported Results and Surprise History - In the last reported quarter, Intuitive Surgical generated revenues of $2.44 billion, a year-over-year increase of +21.4%, with an EPS of $2.19 compared to $1.78 a year ago [11] - The company reported a revenue surprise of +3.93% compared to the Zacks Consensus Estimate and an EPS surprise of +14.06% [11] - Intuitive Surgical has consistently beaten consensus EPS estimates in the last four quarters and topped revenue estimates three times during this period [12] Valuation - Intuitive Surgical is graded D on the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [16]

Core Insights - Intuitive Surgical's second-quarter earnings highlight the accelerating momentum of its single-port (SP) platform, with international adoption, particularly in Korea, driving significant growth [1][10] - The SP platform's utilization increased by 30%, indicating higher throughput per installed system, which is crucial for long-term growth [4][10] International Adoption - Korea reported a remarkable 112% year-over-year increase in SP procedures, showcasing the platform's clinical versatility and operational scalability [1][10] - Europe is experiencing steady progress in SP adoption, with improved utilization levels and new product clearances, including a 50-use endoscope that reduces per-procedure costs [2][10] Competitive Landscape - Stryker's Mako platform is gaining traction with strong global utilization growth and record installations, enhancing recurring revenues through consumables and software services [5][6] - Zimmer Biomet's ROSA robotics platform is seeing ongoing adoption in knee procedures, although results are more muted compared to competitors [7][8] Financial Performance - Intuitive Surgical's shares have decreased by 9.1% year-to-date, outperforming the industry's decline of 17.9% [9] - The forward price-to-earnings ratio for Intuitive Surgical is 49.9, above the industry average but lower than its five-year median of 71.84 [12] Earnings Estimates - The Zacks Consensus Estimate for Intuitive Surgical's 2025 earnings suggests a 14.6% increase from the previous year [13] - Current earnings estimates for the upcoming quarters indicate a year-over-year growth of 8.15% for the current quarter and 11.31% for the current year [14]

Core Viewpoint - The market has shown strong performance, with the S&P 500 reaching new all-time highs, yet several prominent stocks have declined significantly from their 52-week highs, presenting potential recovery opportunities for investors [1]. Group 1: Intuitive Surgical (ISRG) - Intuitive Surgical holds a dominant position in the robotics-assisted surgery market with approximately 60% market share, and the market is expected to triple in size by 2034 [1]. - Following Q2 earnings on July 22, shares have decreased over 14%, and are down 28% from their 52-week high in January [2]. - The MarketBeat consensus price target for Intuitive is approximately $596, indicating a potential upside of nearly 36% [3]. - The forward P/E ratio is currently at 51x, which is lower than its historical average of 58x over the past three years [4]. Group 2: Atlassian (TEAM) - Atlassian has seen a nearly 48% decline from its 52-week high of approximately $323, despite generating over $5.2 billion in revenue over the last 12 months [6][10]. - The MarketBeat consensus price target for Atlassian is over $255, suggesting a potential upside of 51%, while the average target among analysts is around $227, indicating a possible rise of more than 34% [7]. - The forward P/E ratio is at 40x, significantly lower than its average of 76x over the past three years, and the forward EV/S ratio is approximately 7x, compared to an average of 10.5x [8]. Group 3: Sprouts Farmers Market (SFM) - Sprouts Farmers Market has experienced a 33% decline from its all-time high of nearly $180 earlier this year, despite a three-year return of 332%, the highest among large-cap U.S. stocks in the consumer staples sector [10][11]. - The MarketBeat consensus price target for Sprouts is just under $174, implying a 44% upside, with updated targets suggesting a potential rise of nearly 50% [12]. - The forward P/E ratio is around 21x, slightly below its three-year average of 22x, indicating some basis for the expected upside [13].

Core Insights - Intuitive Surgical is viewed as a buy on weakness, while The Trade Desk requires more patience due to slowing growth and competitive challenges [2][14] Intuitive Surgical - Intuitive Surgical reported a strong second-quarter performance with revenue increasing 21% year over year to approximately $2.4 billion, and da Vinci procedures rising about 17% [4] - The company placed 395 new systems, growing its installed base by 14% to over 10,000, and achieved new regulatory milestones for da Vinci 5 in Europe and Japan [4] - For the full year, Intuitive expects worldwide procedure growth of about 15.5% to 17%, despite anticipating gross margin compression to a non-GAAP range of 66% to 67% due to tariff impacts [5] - The stock is currently trading about 29% below its 52-week high, indicating a potential buying opportunity for long-term investors [6] - Intuitive Surgical has a high valuation with a price-to-earnings (P/E) multiple of 61, supported by a growing installed base and rising procedure volumes [12] The Trade Desk - The Trade Desk reported a 19% year-over-year revenue increase to $694 million in Q2, with customer retention above 95% and adjusted EBITDA reaching $271 million [8] - The company’s Q3 guidance suggests revenue of at least $717 million, indicating a growth rate of approximately 14% year over year, which is a slowdown compared to previous growth rates [9] - The competitive landscape is evolving, particularly with Amazon entering the advertising space, which raises concerns about The Trade Desk's market position [10][11] - The stock has declined over 60% year to date, reflecting investor concerns about growth prospects and valuation [11] - The Trade Desk has a P/E ratio of 53, but the slowing growth and competitive challenges suggest it may be better suited for a watchlist until conditions improve [12][13]

Intuitive Surgical, Inc. (NASDAQ:ISRG) is one of the 10 Best NASDAQ Stocks to Buy For Long Term. On September 10, Bank of America Securities reiterated a Buy rating on Intuitive Surgical, Inc. (NASDAQ:ISRG) with a price target of $650. This decision comes in spite of Intuitive Surgical, Inc.’s (NASDAQ:ISRG) stock’s recent performance, which has showed weakness. Analysts Stay Positive on Intuitive Surgical (ISRG) Despite Stock Dip On September 4, Bernstein SocGen Group also reaffirmed an Outperform ratin ...

Group 1 - Intuitive Surgical, Inc. (NASDAQ:ISRG) is considered one of the best beginner stocks to buy, with an 'Outperform' rating and a price target of $685 from Bernstein SocGen Group [1][2] - The stock is currently trading at a discount after a pullback from its high of $610 per share in January, presenting a buying opportunity for investors in the medical technology sector [2][3] - The company is set to launch five transformational products, which are expected to enhance its long-term prospects and strengthen market sentiment [3] Group 2 - Intuitive Surgical develops and markets the da Vinci robotic-assisted surgical system, aimed at making surgeries more effective and less invasive for patients [4] - The company reported a 21% year-over-year increase in second-quarter revenue, reaching $2.44 billion, driven by the broad launch phase of the da Vinci 5 surgical system [3]

Group 1 - Intuitive Surgical (NASDAQ: ISRG) is transforming the healthcare industry with its surgical systems, enhancing the ability of surgeons to perform complex surgeries and improving patient outcomes [1] - Despite its long-term potential, Intuitive's stock has faced challenges, declining by 14% this year and reaching a 52-week low of $425 [2] - The company is exploring telesurgery, which allows surgeons to collaborate remotely, potentially revolutionizing access to surgical care [3][4] Group 2 - The telesurgery market was valued at $2 billion in 2023 and is projected to grow to nearly $6 billion by the end of the decade, driven by advancements in AI and efficiency [5] - Intuitive's surgical systems, including the da Vinci 5, are expensive but have shown significant growth in operations and profitability, outpacing earnings growth over the past five years [6] - The company's systems are positioned to advance healthcare and make telesurgery a viable option for patients, indicating promising long-term prospects [7]

Group 1 - Robotic-assisted surgery has become a reality, with Intuitive Surgical (NASDAQ: ISRG) being a leader in this rapidly growing field, supported by a large global installed base of advanced surgical systems [1] - The company is positioned in a structurally growing industry, focusing on durable companies with economic resilience and pricing power [1] - Intuitive Surgical's business model is characterized by high capital efficiency and the ability to create long-term value, making it a compelling investment opportunity [1] Group 2 - The analysis emphasizes the importance of capital allocation strategies, margin trajectories, and unit economics in assessing the sustainability of growth and returns for companies in this sector [1] - The focus on scalable business models and network effects highlights the competitive advantages that Intuitive Surgical possesses in the market [1]

Core Insights - The article emphasizes three companies—Waste Management, Intuitive Surgical, and Marriott International—as strong candidates for long-term investment due to their competitive advantages and stable cash flows [2][3]. Waste Management - Waste Management (WM) reported second-quarter revenue of approximately $6.4 billion, reflecting a 19% year-over-year increase, driven by solid performance in core operations and contributions from a healthcare disposal acquisition [5]. - The legacy disposal business saw a revenue increase of 7.1% year over year, indicating robust growth even without acquisitions [5]. - WM's management projects full-year free cash flow between $2.8 billion and $2.9 billion, significantly up from an initial guidance of $125 million, supporting dividends and buybacks while allowing for growth investments [6]. - The company's scale, route density, and long-term contracts create a competitive moat that is difficult for new entrants to penetrate [6]. Intuitive Surgical - Intuitive Surgical reported second-quarter revenue of about $2.44 billion, a 21% year-over-year increase, driven by higher placements of da Vinci systems and increased procedure volumes [9]. - The installed base of da Vinci systems grew at a double-digit rate, and management expects procedure growth of approximately 15.5% to 17% in 2025 [9][10]. - The company has a strong balance sheet with significant cash reserves and no debt, enhancing its resilience [12]. - Intuitive Surgical's price-to-earnings ratio is around 61, indicating that much of the potential upside is already reflected in the stock price [11]. Marriott International - Marriott International's second-quarter revenue per available room (RevPAR) increased by 1.5% year over year, with international markets growing by 5.3% [13]. - Non-GAAP earnings per share rose to $2.65, up from $2.50 in the previous year, and adjusted EBITDA reached approximately $1.4 billion, a 7% increase year over year [13]. - The company repurchased about $0.7 billion of stock during the quarter and has returned approximately $2.1 billion year to date through dividends and buybacks [13]. - Marriott's asset-light model, focusing on franchising and management rather than ownership, allows for low capital needs and strong cash conversion [14].

Group 1 - Intuitive Surgical, Inc. (NASDAQ:ISRG) is recognized as a top stock with significant upside potential, with a Buy rating and a price target of $650 from Bank of America Securities [1] - The company's total addressable market is projected to grow from 1.8 million procedures in 2009 to approximately 8 million procedures by 2025, with a strong focus on cardiovascular procedures [2] - Intuitive Surgical is actively pursuing opportunities in the cardiovascular sector by hiring a head of cardio and posting multiple job openings for cardiovascular sales managers [3] Group 2 - The company is enhancing its technology with innovations such as force feedback and improved visualization features in the da Vinci 5 (dV5) system, aimed at increasing the adoption of robotic procedures in cardiovascular surgeries [3] - Intuitive Surgical develops and markets robotic surgical systems, including the da Vinci surgical system and the Ion endoluminal system [4]