North Carolina-based TransEnterix (NYSEAMERICAN:TRXC) isn’t the biggest company in the world, but that’s not necessarily a bad thing. In fact, TRXC stockholders might find that small companies can make big-time advancements and enrich investors at the same time.
As we’ll discover, TRXC stock is truly a “comeback kid” kind of investment. The share price struggled and looked like it was going nowhere for a long time. But then, the market discovered TRXC and it was off to the races.
To put it simply, TransEnterix is involved in surgical robotics. If you believe that this will be a fast-growing business domain, then you might consider buying and holding TRXC stock.
It’s an affordable stock that’s appropriate for all account sizes, but it’s a big mover so don’t overdo it. That being said, you might find a hidden gem with TransEnterix, so let’s begin by checking on the share price’s history.
TRXC Stock at a Glance
For much of 2020, the bulls had difficulty keeping TRXC stock above the key $1 level. Generally, companies will prefer to have their stock shares stay above $1 as it looks more respectable than having the word “cents” attached to the stock.
March of 2020 was definitely a low point for the TRXC stock bulls as the share price touched a 52-week low of just 28 cents. As it turned out, however, that was a prime buying opportunity.
TRXC stock ended 2020 at around 62 cents, but that wasn’t the end of the story. The bulls came out charging in January, pushing the share price to a 52-week high of $4.44.
This was followed by a retracement to the low $3’s by the month’s end. Therefore, prospective TRXC stock investors can get involved without having to buy at the peak price.
Bringing Intelligence to Surgical Systems
So far, we’ve established that TransEnterix is involved in the medical robotics niche. When we unpack the facts on this small company, we can find the potential for a real game changer.
The company’s primary focus is what’s known as laparoscopy, a diagnostic procedure to examine the organs below the abdomen. TransEnterix leverages the power of augmented intelligence and robotics to improve upon traditional laparoscopy methodologies.
While TransEnterix is working to innovate technologies in this space, the company has actually been around since 2006. The company’s technology includes the first machine vision system for use in robotic surgery.
This technology is powered by TransEnterix’s Intelligent Surgical Unit, which enables augmented intelligence in surgery, as well as the company’s digitized laparoscopy product known as the Senhance Surgical System.
These proprietary technologies are already available in the U.S., the E.U., Japan, Russia and other countries.
Innovating Around the World
Clearly, TransEnterix is setting itself up as a small but powerful leader in the expanding medical robotics market.
As evidence of this, the company recently announced that its Intelligent Surgical Unit has been granted CE Mark approval. This will allow TransEnterix to penetrate the highly prospective European market.
The Intelligent Surgical Unit works together with TransEnterix’s Senhance Surgical System enhance minimally invasive surgeries with machine vision.
As the company’s press release clarifies:
For the first time in surgery, the [Intelligent Surgical Unit’s] machine vision capabilities provide the ability to recognize certain objects and locations in the surgical field. This new capability enhances visualization and camera control over currently available surgical technologies, and provides the foundation for additional augmented intelligence capabilities.
We could assert that the CE Mark approval is a major coup for TransEnterix. Yet, it’s also a win for the patents as better technology could lead to better medical outcomes.
The Takeaway
Can a tiny company innovate on a large scale? The answer is a definite yes, and TransEnterix is proving it through exciting medical technologies.
As for TRXC stock, the share price has come off of its 52-week high. This could be an opportunity to seize on a medical-niche runner with great momentum.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
