Technology stocks have been among the most lucrative options in financial markets. Cryptocurrencies and artificial intelligence (AI) companies are expected to count among the top tech stocks over time. AI is being used in innovation in solving traditional problems and American clinical robot manufacturer Intuitive Surgical (NASDAQ: ISRG) is an example of an organization that is doing precisely that.
Keeping the short term fluctuations aside, ISRG stock has managed to sustain growth in the long run. Many analysts believe the stock price holds potential given the company’s current strategies and long term vision. Intuitive flagship robotic surgery arm device, da Vinci surgical system played a crucial role in the company’s story.
ISRG Stock Price Analysis on Chart
The price of Intuitive stock is sustaining within a 52-week range of $180 to $333. The trading price currently stalls around at the higher side of its 52-wk range. ISRG stock is trading at $327.26 with a slight decline of 0.11% in the intraday session.
ISRG stock price has performed well in the yearly time frame. It is up by over 8% in a month and over 55% in a year. Since the start of this year, ISRG share price has swelled up to 24%. The price is still over 11% below its all time high of $369 attained in 2021.
da Vinci Paints Success of Intuitive
Intuitive released its Q1 2023 quarterly earnings report in April where ISRG stock price rallied after positive results. The clinical robots manufacturer generated $1.7 billion in revenue which was a growth of 14% year over year.
As mentioned earlier, da Vinci acts as the backbone for the company. As of March 2023, 7,779 da Vinci systems have been installed, out of which, 4,668 were in the United States while the rest 3,111 were in the other countries.
The da Vinci system has performed more than 12 million procedures worldwide till date. In 2022 alone the number of procedures were more than 1.8 million. The installation of these systems saw a growth of 12% year over year with 312 installations in 2023. While the number of procedures by the system was touted to surge by up to 26% in the similar time frame.
With the placement of its da Vinci systems in the premium category with the price varying from $500,000 to $2.5 million, it brings several advantages for the company. The higher cost makes it difficult for users, hospitals in this case, to shift to other products from competition.
Intuitive follows the razor and blade model, where it manages to bring a significant sum of its recurring revenue through the sales of its instruments, accessories and services. Recurring revenue is a major contributor, while up to 79% of it comes from company sales.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/06/24/isrg-stock-enjoying-intuitive-advantage-of-robotic-systems/