This stock has climbed in the triple digits in recent years.
The S&P 500 has surged over the past three years, so the idea of a market crash may not be at the forefront of investors’ minds. But it’s never too early to think of such a moment and prepare. Market downturns and crashes do happen, and you’re likely to experience them if you invest over the long term.
I have two pieces of good news for you, though: First, as a long-term investor, you’ll also experience good times, such as the bull market we’re seeing today. And second, you can prepare for the tough times by buying resilient stocks that may weather the storm.
And that brings me to the subject of Intuitive Surgical (ISRG +1.57%). Is this robotic surgery giant the one medtech stock to hold through any market crash? Let’s find out.
Image source: Getty Images.
Why buy Intuitive Surgical?
So, first, why is Intuitive Surgical a buy? I like this company because it’s the leader in the robotic surgery market and has a solid moat, or competitive advantage, that should keep it in this position. This is the fact that most surgeons train on Intuitive Surgical’s flagship Da Vinci surgical robot. It’s fair to say that these surgeons may want to continue using a tool they know so well rather than opting for a new system. Hospitals, after investing millions of dollars in robotic systems, are also likely to stick with a platform to amortize those costs.
On top of this, Intuitive keeps innovating to ensure that its platforms are delivering the technology surgeons need. For example, the latest release, the Da Vinci 5, includes more than 100 design innovations to support features like better workflows in the operating room and greater data analysis.
I also like the idea that Intuitive generates revenue when it sells or leases out a platform and when those platforms are put to work. This is because certain instruments and accessories are disposable, so they must be replaced between procedures. In fact, instruments and accessories generate greater revenue every quarter for Intuitive than sales of full platforms. On top of this, service contracts for the maintenance of these systems also add to revenue. So the revenue opportunity doesn’t stop with the sale of a Da Vinci robot.
Today’s Change
(1.57%) $7.72
Current Price
$501.07
Key Data Points
Market Cap
$178B
Day’s Range
$491.27 – $502.50
52wk Range
$425.00 – $608.16
Volume
79K
Avg Vol
1.9M
Gross Margin
65.98%
A track record of growth
All of this has translated into a fantastic track record of revenue and profit growth — and stock performance has followed. The shares have climbed 100% over the past three years.
It’s also important to keep in mind that patients need to have Da Vinci-guided surgeries — procedures such as hernia repair or gallbladder surgery, just to name two — done regardless of the economic backdrop. So Intuitive Surgical may maintain revenue growth even during tough times. This, its solid moat, and recurrent revenue mean this company may be the one medtech player to hold through any market crash.
Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intuitive Surgical. The Motley Fool recommends the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.
