Should You Buy Shares of Intuitive Surgical in December?

Company Overview - Intuitive Surgical specializes in surgical robots, being a pioneer in robotic-assisted surgery (RAS) systems with a global installed base of 10,763 da Vinci surgical robots as of Q3 2025 [1] Market Opportunity - The surgical robotics market presents significant growth potential, evidenced by a 13% year-over-year increase in da Vinci systems and a 20% rise in surgeries performed using these robots [3] Integration of AI - The company is incorporating artificial intelligence into its products, with future possibilities of robotic systems performing surgeries independently, which aligns Intuitive Surgical with AI-focused exchange-traded funds (ETFs) [4] Revenue Streams - The installed base of RAS systems generates a recurring revenue stream from services and sales of instruments and accessories, contributing approximately 75% to the company's total revenue [5] Stock Performance - Following a strong Q3 earnings report, Intuitive Surgical's stock price surged over 20% after hitting a 52-week low, indicating a recovery in investor confidence [6] Valuation Metrics - Current valuation metrics show the stock is trading at a price-to-sales (P/S) ratio of 21, a price-to-earnings (P/E) ratio of 73.5, and a price-to-book-value (P/B) ratio of 11.6, all of which are above their respective five-year averages [7][8] Investment Considerations - Despite the company's strong product quality and recurring revenue potential, the high valuation suggests that it may only be suitable for aggressive growth investors, who should carefully consider the stock's price before investing [10]