Is It Too Late to Invest in Intuitive Surgical Stock After Its Nearly 60% Surge?

Company Overview - Intuitive Surgical is a healthcare company specializing in robotic-assisted surgical devices, particularly the da Vinci surgical systems, which enable minimally invasive and precise procedures [1] - The company's devices are costly, with prices upwards of $2 million, leading many customers to opt for leasing instead of purchasing [2] Financial Performance - Preliminary Q4 2024 results show revenue of$2.4 billion, a 25% increase from the same period last year [3] - Full-year 2024 revenue is expected to reach $8.4 billion, a 17$7.1 billion reported in 2023 [3] - The company has shown strong recovery and growth after pandemic-related disruptions [4] Market and Industry Outlook - The surgical robots market is projected to grow at a compounded annual growth rate of 9.5% until 2030, reaching a global market value of $7.4 billion, up from$4.3 billion in the previous year [4] - The market has significant long-term growth potential as healthcare technologies advance [4] Valuation and Investment Considerations - Intuitive Surgical's stock has rallied, increasing by around 60% over the past 12 months [3] - The stock is expensive, with a price-to-earnings multiple of 95 and a price/earnings-growth multiple over 4, indicating a high valuation [5] - The company's market cap exceeds $210 billion, reflecting a rich valuation [6] - Despite the high valuation, the company's long-term growth potential remains strong, driven by the increasing demand for robotic surgical devices [6][7] - Investors should consider a long-term holding period (10-plus years) to realize potential gains, as short-term gains may be limited due to the stock's high price [7]