The Motley Fool·2025-11-30 11:30Core Insights - Long-term investment strategies focusing on companies with in-demand products can yield favorable results, particularly in the healthcare sector, though current industry leaders may not always be the best choices [1] Surgical Robotics - Intuitive Surgical expanded its installed base of surgical robots by 13% in Q3 2025, with surgeries performed increasing by 20%, indicating strong demand [3] - Approximately 75% of Intuitive Surgical's revenue comes from parts and services for its robots, presenting a significant growth opportunity, although its P/E ratio is high at 74 [3][5] - Medtronic's P/E ratio is significantly lower at 28, and the company is working to catch up in the surgical robotics market, which could enhance its growth prospects [5][6] Pharmaceutical Sector - Eli Lilly's GLP-1 drugs contributed over 50% of its sales in Q3 2025, leading to a high P/E ratio of 53, but future success is uncertain [7] - Pfizer's P/E ratio of around 15 reflects low investor expectations, partly due to an impending patent cliff and a weak pipeline, despite a high dividend yield of 6.8% [8][10] - Pfizer's acquisition of Metsera, a competitor with a promising drug pipeline, indicates proactive measures to enhance its market position [10] Dividend Stocks - Medtronic has a strong track record with 48 consecutive annual dividend increases, making it an attractive long-term investment option [6] - Johnson & Johnson, known as a Dividend King with over five decades of annual dividend increases, offers a 2.5% dividend yield and operates in both pharmaceutical and medical device sectors [13][14] - J&J's P/E ratio of 20 is moderate compared to other companies, suggesting a more stable investment with less volatility [14] Investment Strategy - While Intuitive Surgical and Eli Lilly are currently popular, their high valuations may not be sustainable long-term, making Medtronic and Pfizer more attractive options for buy-and-hold investors [15][16]