By Peet Serfontein, Mmamosa Khanye
We enter a long position with a target price of $506.00 and a stop-loss of $392.00.
Intuitive Surgical is a global leader in minimally-invasive care. The company develops, manufactures, and markets robotic-assisted systems. Their flagship products include the da Vinci surgical systems, which helps surgeons perform procedures in areas including urology, gynaecology and general surgery.
With strong growth prospects over the medium term, the company strives to make surgery more effective, less invasive and easier on surgeons, patients and their families.
Technically, the price at the lower range of an upward sloping linear regression channel pattern makes the stock an interesting candidate for a long position (chart not included). The recent pullback appears to be a correction toward the channel's lower support range rather than a break in trend. A sustained recovery from current levels could support further upside potential.
The recurring pattern of positive returns following each completed negative year also supports a bullish case for the stock (see the insert). ISRG's historical performance shows that each of its six negative calendar years was followed by a positive year, often with a strong rebound, suggesting that periods of weakness have typically been temporary within the broader growth story. While this pattern provides a constructive backdrop for 2026, confirmation through improving momentum, a break above key resistance levels, or a sustained trend recovery would be needed to strengthen the bullish case.
Upside price momentum, according to the Moving Average Convergence Divergence (MACD) histogram, and the recent sideways trajectory in the On-balance volume (OBV) indicator, supports the bullish stance.
Share performance
Share information
| Share Code | ISRG US |
| Industry | Health Care Equipment & Service |
| Market Capital (USD) | 149.1 billion |
| One-Year Total Return | -3.28% |
| Return Year-to-Date | -25.48% |
| Current Price (USD) | 422.06 |
| 52-Week High (USD) | 603.88 |
| 52-Week Low (USD) | 328.57 |
| Financial Year End | December |
| The price remains below its 200-day simple moving average (SMA) indicating that the longer-term trend has not yet regained strength. | |
Consensus expectations (Bloomberg)
| FY25 | FY26E | FY27E | FY28E | |
|---|---|---|---|---|
| Headline Earnings per Share (USD) | 8.93 | 10.78 | 12.10 | 13.58 |
| Growth (%) | 20.67 | 12.27 | 12.21 | |
| Dividend Per Share (USD) | 0.00 | 0.00 | 0.00 | 0.00 |
| Growth (%) | - | - | - | |
| Forward PE (times) | 35.72 | 31.83 | 31.09 | |
| Forward Dividend Yieldd (%) | 0.00 | 0.00 | 0.00 | |
| The company is set to deliver positive double-digit earnings growth over the medium term, supported by an aggressive product upgrade cycle and a resilient recurring revenue flywheel. | ||||
Buy/sell rationale
Technical analysis:
Fundamental view:
Update on previous trade ideas
| Share name and position | Entry | Current price | Movement | Comment | Time to exit |
|---|---|---|---|---|---|
| VST - Buy (Continue to hold) | 139.03 | 162.36 | +16.8% | Price action near the lower boundary of the rising channel remains constructive. The stock has moved just above its 200-day SMA. Weak upside momentum supports the trade idea. We maintain our $176.00 profit target, and our $124.00 and $154.00 trailing stop-loss. | 18 November 2026 |
| TXN - Buy (Continue to hold) | 263.42 | 287.85 | +9.3% | The price has bounced back from the 38.2% Fibonacci retracement and remains above its 200-day SMA. Fading downside momentum supports the trade idea. We maintain our $322.00 profit target and $275.00 trailing stop-loss. | 17 November 2026 |
| GILD - Buy (Continue to hold) | 135.77 | 14.92 | +8.9% | AI model forecast levels remain relevant, while the price holds above its 200-day SMA. Fading upside momentum, however, remains a concern for the trade idea. We maintain our $155.00 profit target and $144.00 trailing stop-loss. | 18 November 2026 |
| COST - Buy (Continue to hold) | 924.59 | 954.63 | +3.2% | The weekly De-trended Price Oscillator (DPO) remains deeply negative, while the price sits just below and appears to be approaching its 200-day SMA. Early signs of upward momentum support trade idea. We maintain our $1 040.00 profit target and $935.00 trailing stop-loss. | 17 December 2026. |
| UI - Buy (Continue to hold) | 626.48 | 620.24 | -1.0% | The developing falling-wedge pattern remains of interest. Price is just below, but approaching, its 200-day SMA. Upside momentum supports the trade idea. We maintain our $780.00 profit target and a trailing stop-loss at $595.00. | 24 February 2027 |
This trade idea can be actioned through FNB Global Trader by visiting shares.fnb.co.za.
