Because I don't know much about the healthcare industry I have been avoiding it thus far. However I have done some research on Intuitive Surgical and was surprised to learn about what they do. The company is a mix between technology and healthcare, there's nobody to compete with them either which was something I found to be valuable at this time.
I have conducted a technical analysis using a trendline and a Fibonacci measurement. The risk is high, fundamentally the stock is very overvalued, but I believe this may be because of the potential the company has to grow. Every hospital is saying the same thing, they are understaffed. I feel like this company might have a positive influence to healthcare and hospitals in the future.
I have calculated the intrinsic value using the discounted cash flow model. Assuming a discount rate of 6.4%, with a 5 year exit the intrinsic value is $365. After running the numbers with a discount rate between 5.8% and 7.0% the range of the intrinsic value is between $235 and $1070 so there is clearly a potential for a significant upside. But I am taking a cautious approach because like I mentioned it is still looking over valued. I want to take the risk of owning this stock but I will monitor the company closely to make sure the fundamentals do not change as to why I decided to buy it in the first place.
I think the technical analysis I have drawn on the chart speaks for itself no need to explain much I think most people know technical analysis. I want to buy it tomorrow but I might wait a week or so to see how the tariff drama plays out and whether I can get a better deal or not I will probably enter with a stop order because I want to enter when the price is going up maybe above the next green bar on the daily we shall see I am being very cautious this time. I will start by allocating 5% of my portfolio to ISRG but that's always subject to change in the future.
I have conducted a technical analysis using a trendline and a Fibonacci measurement. The risk is high, fundamentally the stock is very overvalued, but I believe this may be because of the potential the company has to grow. Every hospital is saying the same thing, they are understaffed. I feel like this company might have a positive influence to healthcare and hospitals in the future.
I have calculated the intrinsic value using the discounted cash flow model. Assuming a discount rate of 6.4%, with a 5 year exit the intrinsic value is $365. After running the numbers with a discount rate between 5.8% and 7.0% the range of the intrinsic value is between $235 and $1070 so there is clearly a potential for a significant upside. But I am taking a cautious approach because like I mentioned it is still looking over valued. I want to take the risk of owning this stock but I will monitor the company closely to make sure the fundamentals do not change as to why I decided to buy it in the first place.
I think the technical analysis I have drawn on the chart speaks for itself no need to explain much I think most people know technical analysis. I want to buy it tomorrow but I might wait a week or so to see how the tariff drama plays out and whether I can get a better deal or not I will probably enter with a stop order because I want to enter when the price is going up maybe above the next green bar on the daily we shall see I am being very cautious this time. I will start by allocating 5% of my portfolio to ISRG but that's always subject to change in the future.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.