Medical Devices: Intuitive Surgical (ISRG)
Intuitive Surgical (ISRG) shares took a big hit late last week following its fourth-quarter numbers, but bear in mind that ISRG stock had been through an overheated run-up in the days before that. Even with Friday’s 6% selloff, Intuitive Surgical shares are up 7% year-to-date — a paradigm shift compared to 2013′s 21% slide.
So what makes ISRG stock such a hot buy now? After all, the company warned investors to expect lower revenues, and this is the same company that makes the highly suspect, possible-problem-causing da Vinci robotic surgery system.
As is so often the case, the story was made far more dramatic than it really was. It looks like the market’s starting to figure that out, bidding ISRG stock up as a result.
Just brace for more volatility, as some traders and observers (and those with short positions in the stock) are apt to rehash the da Vinci news and the revenue warning repeatedly in the foreseeable future.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.