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Biotech / Medical : Intuitive Surgical, Inc. (ISRG)
ISRG 534.31+0.8%3:59 PM EDT

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From: IceHawk3/25/2019 4:37:37 PM
1 Recommendation

Recommended By
lightshipsailor

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3 Top Healthcare Stocks to Buy Right Now

Healthcare stocks on an overall basis aren't keeping up with the broader market indexes' performance. Don't let that fool you, though. Over the long run, healthcare stocks are in a great position to win, thanks in part to aging baby boomers.

We asked three Motley Fool contributors to pick the healthcare stocks they think are great choices to buy right now. They selected Biogen (NASDAQ: BIIB), CVS Health (NYSE: CVS), and Intuitive Surgical (NASDAQ: ISRG). Here's what the Fool contributors especially liked about these three stocks.

A big head start in a fast-growing market Keith Speights (Intuitive Surgical): Check out the large hospitals in a major city near you. The chances are pretty good that at least one of them uses Intuitive Surgical's da Vinci robotic surgical system. And the odds are really good that Intuitive's systems will be used a lot more in the future.

There are two primary reasons I'm so confident in that statement. First, aging demographic trends in the U.S. and in other major countries should increase the volume of operations performed in the types of procedures for which the da Vinci system is most used today. Second, robotic surgery holds the potential to reduce the variability in outcomes that's still a big problem with many surgical procedures.

These factors should also benefit Intuitive Surgical's rivals. The company faces more competition than ever before, with more contenders jumping into the fray. However, I like Intuitive's prospects even with increased competition.

The company's large base of customers has financial incentives to maximize its return on investment with the da Vinci system rather than switch to a competing system. Intuitive's long track record also gives it an advantage in winning new customers. The company's continual innovation should also help keep it on top.

Intuitive Surgical is a company with a big head start in a fast-growing market, and tremendous cash flows. It has an impressive level of recurring revenue (over 70% of total revenue). That's the kind of healthcare stock I think investors can buy right now and hold for years to come.

finance.yahoo.com
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