Artificial intelligence (AI) and robotics advancements have changed the world in so many ways. Healthcare is at the top of the industries benefitting from the evolution of robotics. Robotic-assisted surgical devices are becoming increasingly popular as they offer greater precision and control during complex surgical procedures. What robotic surgery stocks should we look at?
Physicians use these devices to perform highly delicate and minimally invasive surgeries. They sit behind a controller to operate computerized devices during surgery.
The technology gives them more control during surgical procedures than manual operations performed by hand.
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Some industry experts even believe that the evolving robotic-assisted surgical devices can potentially replace surgeons.
Even if they don’t, improved connectivity and AI advancements will let physicians perform remote surgeries using robotic surgery devices, helping patients in need during the global crisis of the Covid-COVID-19mic.
The increasing adoption of such devices has created a massive opportunity for robotic surgery stocks, which are already capitalizing on the strong demand for their equipment. Here, we will discuss some leading robotic surgery stocks that have been doing well lately.
1. Intuitive Surgical (NASDAQ: ISRG)
When it comes to robotic surgery stocks, Intuitive Surgical is the first name that comes to mind. The company is famous for its robotic surgical systems. Its flagship da Vinci surgical system was one of the first robotic-assisted systems cleared by the Food and Drug Administration (FDA).
Physicians across all states of America use Da Vinci, which is famous for minimally invasive surgical procedures. Moreover, nearly 70 countries worldwide use da Vinci systems to perform surgeries. The company’s website states that over 8.5 million procedures have been performed using its da Vinci technologies. One of the reasons behind da Vinci’s increasing popularity is its reduced overall risk compared to open surgery.
The popularity of Intuitive’s robotic surgery products has boosted its share price in recent years. ISRG stock has climbed over 320 percent over the past five years, nearly +54 percent during the past 12 months, and about 12 percent in 2021. The stock is currently trading around its all-time high price of $910. Meanwhile, the company’s total market value is approaching $108 billion.
Latest Financial Performance
Intuitive last announced its quarterly financial results in April. The robotics surgery equipment maker reported adjusted earnings of $3.52 per share for the quarter ended March 31, up from $2.70 per share in the comparable period of 2020. Total revenue for the quarter climbed 18 percent year-over-year to $1.29 billion. The results easily exceeded analysts’ average estimate of $2.64 per share for earnings and $1.11 billion for revenue.
The company announced that it delivered 298 da Vinci Surgical Systems in the quarter, translating to a year-over-year surge of 26 percent. The da Vinci Surgical System installed base reached 6,142 with the latest shipments, compared to 5,669 in the year-ago quarter. Moreover, worldwide da Vinci procedures jumped 16 percent in Q1. So remember this when looking at this stock on our robotic surgery stocks list.
Growth Potential
Intuitive’s sales decelerated last year as physicians postponed many nonessential surgeries due to the lockdown restrictions to prevent the spread of COVID-19 cases. However, the sales have started to recover this year as the pandemic is heading towards its end.
The company’s robotic surgical systems were involved in 1.2 million procedures last year despite operational hurdles caused by the pandemic. The number is expected to increase sharply as more healthcare facilities install robotic surgical systems and offer more precision and safety.
Being a dominant player in the market for robotic-assisted devices, Intuitive Stock will certainly benefit from the increasing adoption of robotic products in the healthcare sector. Meanwhile, Intuitive is working on new technological innovations to capitalize on the rapidly growing market for robotic surgery devices.
It’s pouring heavy money on research and development activities to keep its dominant position in the industry. It currently leads the robotic surgery market with more than 75 percent share. For now, it seems that Intuitive will continue to grow at a decent place, as no imminent threat can disrupt its growth. So watch the growth potential on this robotic surgery stocks list.
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2. ABB Ltd (NYSE: ABB)
Swiss engineering group ABB made its first major foray into the healthcare market in October 2019 when it launched its healthcare research facility at the Texas Medical Center (TMC) campus.
The company then showcased several technologies, including a moving YuMi robot to assist medical staff in various logistics and laboratory tasks.
The dual-arm mobile YuMi can sense and navigate its way inside hospitals autonomously. It can carry out repetitive and time-consuming activities like preparing medicines, pipetting, loading and unloading centrifuges, and sorting test tubes.
Moreover, it can also perform various logistic tasks, including transporting drugs and delivering medical supplies to the concerned hospital staff.
Meanwhile, ABB is developing several robots capable of performing repetitive and delicate tasks better than skilled medical workers. The company claims repetitive tasks can be performed 50 percent faster with automation than manual processes.
Besides, robots can operate 24 hours daily, making them more suitable and efficient than humans. And why this is a part of our robotic surgery stocks list.
Latest Earnings Report
ABB’s financial figures improved in the first quarter of 2021. The Swedish robotics company reported earnings of $502 million versus $376 million in the comparable period of 2020. Its operational earnings jumped to $959 million, compared to $636 million in the year-ago quarter.
Total revenue for the first quarter rose 7 percent yearly to $6.90 billion. Meanwhile, total orders increased 1 percent to $7.76 billion in the quarter. The company expects its second-quarter orders and revenue to grow more than 10 percent year-over-year.
ABB stock has surged nearly 54 percent during the past 12 months. The company continued its growth momentum in 2021, with its share price up more than 20 percent yearly. The 52-week range of the stock is $33.70-$34.08, while its market value stands at approximately $ 68 billion.
Future of Robotic Surgery Stocks
The Healthcare industry has been in the spotlight over the last year. Hence, this is why we should look at robotic surgery stocks. Physicians and medical staff suffered the most during the Covid-19 pandemic.
They had to deal with many patients infected with the virus. In addition, many health facilities worldwide faced a staff shortage to deal with the pandemic.
Things might have been different if robotics solutions had been available to support the human workforce in research centers and hospitals.
Nevertheless, leading pharmaceutical companies and hospitals have realized that they must automate their operations to improve efficiency, control costs, and accelerate research and development activities.
This will help them better deal with a global health crisis like Covid-19 and overcome issues such as the shortage of skilled medical professionals.
Robots have proven to be accurate, faster, and flexible, making them ideal for performing repetitive tasks. Technological advancements have made robots well-suited for laboratories and medical facilities. Many health facilities have already deployed robots to enhance operational output.
For instance, researchers at the European Institute of Oncology have integrated YuMi to help staff in an immuno-assay preparation process, which includes several repetitive activities such as washing well plates. Copan Diagnostics uses YuMi to manage tissues, bone, and fluid samples. It’s also helping Copan transport swabs and blood cultures.
Final Thoughts: Robotic Surgery Stocks
ABB claims that YuMi is the fastest collaborative robotic device available. Moreover, it’s safe in design as it has no pinch points and has a collision-detection feature. Furthermore, the company is working on several other robots besides YuMi. However, we are not sure when they will hit the market.
Meanwhile, healthcare facilities have shown great interest in surgical and non-surgical robotic devices. Hospitals have started deploying robotic machines to improve operational efficiency and stand out in this increasingly digital world. The trend will benefit robotic companies like ABB and Intuitive Surgical.
The use of robotics in healthcare facilities is not new. However, many robotic technology advancements have occurred in recent years. As a result, we see more sophisticated and highly intelligent robots becoming a part of leading hospitals and research centers. Another reason behind the increasing adoption of robots is affordable prices, with more established companies stepping into the market. So keep these robotic surgery stocks in mind.
