Intuitive Surgical (NASDAQ:ISRG) makes the innovative da Vinci surgical systems that have revolutionized operations used to treat cancer and heart disease, among other things. Without getting too technical, Intuitive Surgical gear allows doctors to operate on a patient with fewer incisions, speeding up recovery time and reducing the risk of complications.
ISRG is up 300% since 2009 and has doubled its pre-recession highs thanks to aging Baby Boomers creating increased demand for these kind of surgeries. The company has seen 12 straight quarters of year-over-year profit increases and has seen a streak of revenue increases longer than 16 (I stopped counting after four full fiscal years).
Health care is one of the few growth areas in the American economy, and ISRG is well positioned to capitalize on this trend. The company has zero debt and boasts roughly $1 billion in cash and short-term investments. It has also authorized over $1.3 billion in stock across the last three years.
Throw in a strong history of earnings, including three-straight double-digit surpises, and you can see why ISRG would be a good buy even at over $500 a share. Just act before the Wednesday, July 18 earnings report, however, or you may be paying even more. ISRG reports after the close.