Each month we'll be highlighting one of our top holdings for our clients. A month of performance is obviously a very short time period but we'll dive into the stock and what they're doing and maybe why they're performing so well.
Intuitive Surgical designs, manufactures and markets the da Vinci Surgical System and related instruments and accessories.
Intuitive Surgical finished the month of April up 17%. In late April the company had sales of $1.29 billion vs $1.1 billion the year prior which led to many analysts raising their estimates for this year and next year. Being the clear leader in the space of robotic surgery, Intuitive Surgical is looking poised to dominate going forward. The da Vinci system is now a staple in many hospitals across the country and we don't see that changing any time soon. In fact, with less competition internationally, sales could just be picking up momentum which will fuel growth for ISRG for years to come.
At near $900 the stock was probably ahead of itself and I wouldn't be buying it. But the closer the stock is to $700, the more reasonable it is to buy. And as for selling, this is a name that you need to try and hold and remain patient as long as you can. They dominate the industry they're in and the business potential is still very strong. There will be times where it feels stressful to hold this name through market dips or bad quarters but this often happens to the best companies.