1 Unbeatable Reason Why Intuitive Surgical (ISRG) Tops Healthcare Stocks to Buy Now

Robots are scalping the competition—and printing cash for investors.

The Da Vinci surgical system isn't just cutting tissue; it's slicing through market share. Hospitals can't get enough of the precision, and patients are voting with their wallets for faster recovery times.

Forget biotech hype cycles and drug trial roulette—this is hardware that prints recurring revenue. Every procedure means more instruments, more service contracts, more ecosystem lock-in.

While traditional medtech firms are stuck in regulatory molasses, Intuitive keeps upgrading its systems like a tech company—not a stodgy old device maker.

One cynical note? Wall Street still values it like a medical stock rather than a tech disruptor. Their loss—your gain.

Image source: Getty Images.

Medtronic submitted an application to the Food and Drug Administration in the first quarter that could allow the company to begin marketing its device in the U.S. in early 2026. Before getting too concerned about a competitive threat in the U.S., investors should know that Hugo RAS earned its first marketing approval from European regulators in 2021. Sales still aren't high enough to be mentioned in the company's earnings reports.

In 2024, da Vinci systems performed 2.68 million procedures. Last year alone, the company increased the number of da Vinci machines in hospitals by 1,790 to reach a whopping 11,040 around the globe.

The hospitals that invest in da Vinci systems also invest a great deal in training the surgical teams that operate them. The switching costs are so high that competitors like Medtronic have a hard time gaining market share.

Despite falling a long way this year, shares of Intuitive Surgical are still trading north of 55 times earnings estimates. That's a high valuation, but the company also expects procedure volume to soar by 15.5% to 17% this year. Investors with a high risk tolerance probably want to take a closer look.