Here's How Much a $1000 Investment in Intuitive Surgical, Inc. Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Intuitive Surgical, Inc. (ISRG) ten years ago? It may not have been easy to hold on to ISRG for all that time, but if you did, how much would your investment be worth today?
Intuitive Surgical, Inc.'s Business In-Depth
With that in mind, let's take a look at Intuitive Surgical, Inc.'s main business drivers.
Headquartered Sunnyvale, CA, Intuitive Surgical Inc designs, manufactures and markets the da Vinci surgical system and related instruments and accessories, which is an advanced robot-assisted surgical system. The surgical system comprises a surgeon’s console, patient-side cart, 3-D vision system, da Vinci Skills Simulator and Firefly Fluorescence Imaging.
Intuitive Surgical’s robot-based da Vinci surgical system enables minimally-invasive surgery that reduces the trauma associated with open surgery. The da Vinci System is powered by robotic technology which has provided the company with a solid exposure to Mechatronics, Robotocs and Artificial Intelligence for healthcare. The system provides 3-D High Definition vision, which helps surgeons gain superior visual clarity of target tissue and anatomy.
It also manufactures EndoWrist instruments, such as forceps, scissors, electrocautery tools, scalpels, and other surgical tools, which incorporate wrist joints for natural dexterity for various surgical procedures. Additionally, the company sells various accessories comprising sterile drapes for ensuring sterile field during surgery; and vision products that include replacement 3D stereo endoscopes, camera heads, light guides, and other items that facilitate use of the da Vinci Surgical System, as well as Ion endoluminal system for biopsies.
The company operates through three segments: Instruments and Accessories, Systems and Services.
2021 Results at a Glance
Intuitive Surgical’s 2021 revenues totaled $5.71 billion, up 31% from 2020.
The company’s Instruments & Accessories sales were $3.10 billion (54.3% of net revenues), Systems revenues were $1.69 billion (29.7%) and Services revenues grossed $916.2 million (16%).
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Intuitive Surgical, Inc. a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in November 2012 would be worth $4,433.96, or a gain of 343.40%, as of November 17, 2022, and this return excludes dividends but includes price increases.
The S&P 500 rose 191.11% and the price of gold increased -0.46% over the same time frame in comparison.
Going forward, analysts are expecting more upside for ISRG.
Intuitive Surgical reported robust third-quarter results, beating estimates on both counts. The company’s da Vinci procedure volume demonstrated strong recovery in the first nine months of 2022, a trend likely to continue in upcoming quarter. The company’s revenue growth in the quarter under review reflected rise in revenues from procedures, system placements and services across all markets. Per management, strong U.S. dollar, lingering supply chain issues and inflation hurt operating margin. Despite this challenging environment, Intuitive Surgical witnessed healthy customer demand for its products in the quarter under review. A stable liquidity position is an added plus. It outperformed its industry so far this year. Yet, stiff competition in the global MedTech space and rising costs remain concerns for Intuitive Surgical.
The stock is up 24.58% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2022. The consensus estimate has moved up as well.
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