ISRG is a pioneer in robotic surgery with their DaVinci system. After suffering last year the company is on the comeback trail with two quarters of positive EPS and sales increases, featuring significant beats in both reports. More importantly these metrics are projected to accelerate in the two quarters ahead, with EPS increases of better than 30% and 100% on tap on sales increases of 27% and 47%. With the company’s recent outperformance investors are likely to bid up shares into these reports.
Technically price is favorably positioned for entry. The stock gapped up on an earnings report in July but has not been an easy hold, trading in choppy fashion after an initial run. But price has pulled back for the first time of late to the 50 MA and has formed a five week flat base. With medical stocks leading the 52 week highs list we’d be buyers of any move to new highs.
Posts
No comments:
Post a Comment