Is Intuitive Surgical Inc. (ISRG) stock the next gem of its Industry?

Intuitive Surgical Inc. (NASDAQ: ISRG), the maker of the Da Vinci surgical robot and its consumables, has sufficient finances to spend on research and development. The firm is continually launching new attachments and tools to help its robots perform better. This plan is anticipated to be continued by management until at least 2030.

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The selling of consumables for operations and maintenance provides Intuitive Surgical with a regular revenue stream. Simultaneously, the company does not release the collected funds to shareholders; instead, it keeps them in its accounts to continue investing.

The success of Intuitive Surgical Inc. (ISRG) can be attributed to retained earnings. On a growing scale, the corporation reinvests its earnings in expansion in the form of operational capital or acquisitions.

Intuitive Surgical Inc. (ISRG) announced the formation of a $100 million venture fund in 2020 to invest in firms that provide minimally invasive care. These investments will take time to pay off, but the rewards may be substantial if they are successful.

Intuitive Surgical’s net income has increased by approximately 154 percent in the last five years, reaching $1.7 billion in 2021. In addition, revenue has surged by roughly 82 percent to $5.7 billion.

Because of Intuitive Surgical’s capacity to keep and reinvest its earnings, newcomers to the robotic surgery industry will not have the same capital accumulation basis. This lowers the possibilities of successful competition and makes them more accessible. Furthermore, Intuitive Surgical Inc. (ISRG) is one of the world’s largest medical firms, yet it is still in its early stages.

The shares of Intuitive Surgical Inc. (ISRG) fell -1.20 percent to $276.35 on Monday. ISRG shares have increased by 2.20 percent in the last year, but have been down by -4.66 percent in the last week. The stock has dropped by -10.20 percent in the last three months and -16.64 percent in the last six months. Furthermore, the company’s current market capitalization is $101.22 billion, with 357.60 million outstanding shares.