Many of us occasionally look at an impressive stock that we don't own and wonder, "How much would I have today if I'd invested in it some years ago?" One company that those in the know might wonder about is Intuitive Surgical (ISRG -0.11%) -- a giant in the robotic surgery arena.
Image source: Getty Images.
Check out its mighty trailing average annual returns:
Over the Past | Average Annual Return |
---|---|
1 year | 53.78% |
3 years | 28.76% |
5 years | 24.98% |
10 years | 26.58% |
15 years | 20.26% |
Source: Morningstar.com. Percentages as of Jan. 30, 2025.
Wow, right? Imagine you bought $10,000 of shares in Intuitive Surgical a decade ago. What would they be worth now? Well, the answer is $105,634 or so. Your position would have increased in value more than tenfold.
The overall stock market, as measured by the S&P 500 index of 500 of America's biggest companies, is another solid investment, and over the same period, it averaged far smaller, but still solid, annual gains of 12.71% -- considerably more than its 10% long-term average annualized gain. Over that decade, a $10,000 investment in the index (with dividends reinvested) would have grown into about $36,480.
Given all that, should you invest in Intuitive Surgical today? I'd say yes -- but its shares are not cheap at recent levels, so consider waiting and hoping for a pullback. Alternatively, you could build a position in the stock incrementally over time.
The company is growing at a solid clip. In January, it posted fourth-quarter results that showed revenue to be up 25% year over year and adjusted earnings per share to be up 38%. Intuitive installed 493 of its da Vinci surgical systems during the quarter. Year over year, it has boosted its installed base of machines worldwide by 15% to nearly 10,000 machines.
It's not too late to become an Intuitive Surgical shareholder. Just be sure to research the company, and to buy in at a good or great price.
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