Investors with a lot of money to spend have taken a bearish stance on Intuitive Surgical (NASDAQ:ISRG).And retail traders should know.We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with ISRG, it often means somebody knows something is about to happen.So how do we know what these investors just did? Today, Benzinga's options scann ...

Key Points Intuitive Surgical is looking at a vast long-term opportunity in its market. The company's moat practically guarantees it will remain a leader in the field. This strong position in its industry can allow it to overcome the challenges it faces. 10 stocks we like better than Intuitive Surgical › Intuitive Surgical (NASDAQ: ISRG), which specializes in the robotic-assisted surgery market, has had a difficult year. The company is facing a significant threat from the impact of President Donal ...

Two quality companies are on sale -- but only one looks like a dip worth buying right now.When great businesses sell off, investors should lean in -- but only after checking whether the fundamentals are still doing the heavy lifting. Intuitive Surgical (ISRG 0.76%), the robotic-surgery leader behind the minimally invasive da Vinci system, and The Trade Desk (TTD 1.27%), a programmatic advertising platform for the open internet, have both been under pressure this year.Both companies reported fresh quarterly ...

Core Insights - The integration of artificial intelligence (AI) into robotics is expected to revolutionize various industries, creating significant investment opportunities in the sector [1][2] - Seven key robotics companies are highlighted as potential early investment opportunities, each positioned to benefit from the ongoing transformation driven by AI [2][13] Company Summaries - **Intuitive Surgical (ISRG)**: A leader in robotic surgery with over 10,488 systems installed globally, generating 70% gross margins through a razor-and-blade model [4] - **Rockwell Automation (ROK)**: Dominates industrial automation in North America, embedding AI into its platforms, though sensitive to manufacturing cycles and facing competition from Siemens and ABB [5][6] - **Symbotic (SYM)**: Innovates in warehouse automation with AI-powered robots, recently acquiring Walmart's Advanced Systems & Robotics for $200 million, potentially increasing its backlog by over $5 billion [7][8] - **Teradyne (TER)**: Offers exposure to both semiconductor testing and collaborative robotics through its ownership of Universal Robots and MiR, though faces volatility from semiconductor cycles [9] - **Hesai Group (HSAI)**: Manufactures lidar sensors for autonomous vehicles, holding significant market share but facing price pressures and geopolitical risks [10] - **Zebra Technologies (ZBRA)**: Provides digital solutions for logistics and has expanded into robotics through Fetch Robotics, with risks tied to e-commerce cycles [11] - **Cognex (CGNX)**: A leader in machine vision with a 45% market share, its products enhance factory efficiency but face margin pressures from low-cost competitors [12] Industry Overview - The robotics sector is poised for a new era of automation comparable to the Industrial Revolution, driven by the fusion of digital intelligence and physical action [2] - The landscape includes established leaders with recurring revenue and emerging players targeting high-growth niches, reflecting a blend of stability and disruption [13]

Group 1 - Intuitive Surgical is recognized as a leading company in the medical device sector, particularly in robotic surgery, with its da Vinci system being the first robotic-assisted surgery device cleared in the U.S. [2][3] - The company demonstrates strong financial performance, with a revenue increase of 21% year over year to $2.44 billion in the second quarter, and non-GAAP earnings per share rising by 23% to $2.19 [11] - Intuitive Surgical benefits from a competitive moat due to its patents and high switching costs, making it difficult for competitors to gain market share [3][12] Group 2 - The company faces challenges including tariffs impacting financial results and increased competition from Medtronic and Johnson & Johnson, which are launching their own robotic-assisted surgery devices [6][7] - Despite these challenges, the robotic-assisted surgery market is underpenetrated, indicating significant long-term growth potential for Intuitive Surgical [12][13] - The company's price-to-earnings-to-growth (PEG) ratio is approximately 2.2, suggesting that while the stock is not cheap, it may still be worth the premium for long-term investors [10][14]

Group 1: Intuitive Surgical - Intuitive Surgical is a leader in robotic-assisted surgery (RAS) devices, primarily driven by its da Vinci system, which allows for minimally invasive surgeries across various medical fields [4] - The company has faced challenges such as a decline in bariatric surgeries and tariffs, but its long-term prospects remain strong due to a resilient business model and consistent growth in revenue [5][9] - The addressable market for Intuitive Surgical is underpenetrated, with over half of its revenue coming from instruments and accessories tied to procedure volume, benefiting from an aging global population [7][8] - Intuitive Surgical has outperformed the market for 25 years, indicating potential for significant capital growth for younger investors [9] Group 2: Moderna - Moderna is considered a riskier investment compared to Intuitive Surgical but has substantial upside potential, particularly due to its successful COVID-19 vaccine and innovative mRNA platform [10] - The company has achieved several clinical and regulatory successes, including approvals for vaccines against RSV and ongoing trials for vaccines targeting influenza and cancer [11][13] - Despite a recent lag in stock performance due to declining sales from its coronavirus vaccine franchise, Moderna's pipeline remains promising, with potential candidates for various cancers and an early-stage HIV vaccine [12][14] - If Moderna successfully mainstreams mRNA vaccines over the next five years, it could lead to significant stock upside, making it a consideration for younger investors who can tolerate volatility [14]

Company Performance - Intuitive Surgical's Ion platform experienced a 52% year-over-year increase in procedures, reaching approximately 35,000 in Q2 2025, indicating its growing significance in minimally invasive lung diagnostics and interventions [1][9] - The installed base of Ion systems grew to 905, although capital placements decreased to 54 from 74 in the prior-year period, highlighting challenges in scaling hardware sales despite improved utilization [2][9] - Average system utilization increased by 8% year-over-year, reflecting stronger engagement from existing customers [2] Market Expansion - The quarter marked Ion's first commercial procedures in Australia and Korea, expanding its global footprint [2] - The potential for Ion to replicate the success of Intuitive Surgical's da Vinci system could open a multi-billion-dollar opportunity in early lung cancer diagnosis and thoracic procedures [3] Challenges and Opportunities - The slowdown in system placements indicates a near-term bottleneck, with hospital capital budgets under pressure from macroeconomic and trade headwinds, which may affect expansion [4] - Despite these challenges, Ion is viewed as a promising growth vector for Intuitive Surgical, with strong procedural momentum and expanding international presence [5] Competitive Landscape - Stryker introduced its fourth-generation Mako SmartRobotics system, enhancing surgical planning and execution capabilities [6] - Globus Medical showcased its ExcelsiusFlex robotic navigation system, designed to improve surgical precision and accommodate diverse patient needs [7] Financial Overview - Intuitive Surgical's shares have declined by 8.3% year-to-date, compared to the industry's decline of 10.2% [8] - The company trades at a forward price-to-sales ratio of 16.13, above the industry average but lower than its five-year median of 26.91 [11] - The Zacks Consensus Estimate for Intuitive Surgical's 2025 earnings suggests an 11.3% increase from the previous year [12]

Core Viewpoint - Medtronic, despite recent challenges and underperformance in the market, has potential for long-term investment due to strategic moves and strong fundamentals [1][11]. Group 1: Business Strategy - Medtronic is spinning off its diabetes care unit to become a standalone publicly traded company, which accounted for 8% of revenue but only 4% of operating profits in fiscal year 2025 [3][4]. - The spin-off allows Medtronic to focus on higher-margin opportunities and navigate potential higher manufacturing costs due to tariffs [4]. - The company aims to find lucrative revenue growth opportunities outside of its consumer-facing diabetes care segment [4]. Group 2: Market Opportunities - Medtronic is developing its robotic-assisted surgery system, Hugo, which is underpenetrated in the market, with fewer than 5% of procedures currently performed robotically [6][7]. - The aging population is expected to increase demand for robotic-assisted surgeries, positioning Medtronic favorably for future growth [7][8]. - The Hugo system has completed clinical trials in the U.S. for urologic procedures, with a request for FDA clearance submitted [7][8]. Group 3: Financial Stability - Medtronic has raised its dividends for 48 consecutive years, indicating strong underlying business health and stability [9][10]. - The company is on track to become a Dividend King in two years, making it an attractive option for income-seeking investors [10]. - Medtronic's consistent dividend payments reflect its established leadership in the healthcare market and ability to navigate regulatory challenges [9][10].

Core Viewpoint - Intuitive Surgical has a strong history of wealth creation for long-term shareholders, with stock returns exceeding 25,000% since its IPO in 2000, driven by its pioneering role in robotic-assisted surgery [1] Company Performance - The da Vinci system remains the company's flagship product, contributing to profitable growth from an expanding installed base [2] - As of June 30, there are 10,488 da Vinci systems installed globally, which performed 17% more procedures in Q2 compared to the previous year, indicating healthy growth [9] - The company estimates its core addressable market at approximately 8 million annual soft tissue procedures, with over 3 million procedures expected this year, suggesting solid growth potential [10] Financial Metrics - Intuitive Surgical currently has a price-to-earnings (P/E) ratio of 75, with analysts projecting an average earnings growth of 13.8% annually in the long term [4] - The company has zero debt, is highly profitable, and holds $4.5 billion in cash, allowing for potential share repurchases to enhance earnings per share [11] Market Sentiment - The broader S&P 500 healthcare sector is trading near the low end of its 52-week range, indicating a lack of popularity for healthcare stocks at this time [5] - Market sentiment is currently unfavorable for the healthcare sector, which may be impacting Intuitive Surgical's stock price [6] Future Projections - Based on a 13.8% growth rate applied to trailing-12-month earnings per share of $6.82, potential future stock prices by July 2030 could range from $456 to $976 depending on the P/E ratio [12] - The company may face a period of underwhelming returns if its valuation adjusts to more appropriate levels for its expected growth [13]

Key Takeaways MDT's focus on value-based outcomes and procedural efficiency, such as in pulse field ablation and renal denervation, resonates with financially constrained systems. CEO Geoff Martha stated that Medtronic's innovation pipeline (including closed-loop neurostimulators and AI-enabled spine platforms) is expanding the total addressable market while balancing spend and margin expansion. ISRG's Price Performance, Valuation and Estimates Hospital CapEx constraints are clearly impacting ISRG's interna ...