Will Intuitive Surgical Stock Continue Its Rally After A 15% Rise In A Month?

[Updated: 7/9/2021] ISRG Stock Rise

The stock price of Intuitive Surgical (NASDAQ: ISRG) has seen a 15% rise over the last twenty-one trading days, while it is up a solid 64% over the last year. ISRG stock has benefited from a rebound in volume of procedures and strong Q1 results. Total procedures grew 16%, while the company placed 298 new da Vinci systems in Q1, as compared to 10% growth in procedures and 237 system placements in the prior year quarter. This trend is expected to continue with an increased Covid-19 vaccination rate, as people feel more confident in heading out of their homes and attend to elective surgeries that were postponed during the pandemic.

However, now that ISRG stock has seen a rise of 15% in twenty-one trading days, will it continue its upward trajectory, or is a fall imminent? Going by historical performance, there is a higher chance of a rise in ISRG stock over the next month. Out of 43 instances in the last two years that ISRG stock saw a twenty-one day rise of 15% or more, 24 of them resulted in ISRG stock rising over the subsequent one month period (twenty-one trading days). This historical pattern reflects 24 out of 43, or about 56% chance of a rise in ISRG stock over the coming month. See our analysis on Intuitive Surgical Stock Chances of A Rise for more details.

Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last two years data

1. After moving 3.4% or more over a five-day period, the stock rose in the next five days on 51% of the occasions.
2. After moving 5.6% or more over a ten-day period, the stock rose in the next ten days only on 46% of the occasions
3. After moving 15.0% or more over a twenty-one-day period, the stock rose in the next twenty-one days on 56% of the occasions.

Predict average return on Intuitive Surgical Stock Return: AI Predicts ISRG Average and Excess Return After a Fall or Rise

Intuitive Surgical Stock Return (Recent) Comparison With Peers

• Five-Day Return: EW highest at 4%; BSX lowest at 1.3%
• Ten-Day Return: ISRG highest at 5.6%; BSX lowest at -0.09%
• Twenty-One Days Return: ISRG highest at 15%; MDT lowest at 2.7%

Although with momentum on its side and going by historical performance, it appears that ISRG stock may see even higher levels, we continue to believe that it is richly valued at the current levels, and investors may be better off to wait for any dip to buy the stock. Our update below has more details.

While ISRG stock may see higher prices, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Mettler vs Abbott.

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