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Should You Buy Intuitive Surgical Stock While It's Under $500?

- - Should You Buy Intuitive Surgical Stock While It's Under $500?

David Jagielski, CPA, The Motley FoolFebruary 10, 2026 at 2:05 AM

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Key Points -

Intuitive Surgical's growth rate was around 19% last quarter.

The company has been growing steadily over the years, and it still has plenty of potential in the long term.

The stock's valuation, however, remains high.

10 stocks we like better than Intuitive Surgical ›

Intuitive Surgical (NASDAQ: ISRG) is a promising healthcare company that could help revolutionize the sector. Its da Vinci surgical systems can help make surgery more precise and lead to better outcomes for patients. The company has been experiencing strong growth in recent years and still has much more potential in the long term.

Investors, however, haven't been terribly bullish on it of late, as the stock has declined more than 10% this year, falling to less than $500. Could the healthcare stock prove to be a steal of a deal at its current price?

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Doctor reviewing an MRI scan.

Image source: Getty Images.

The company's growth rate has been strong

For years, Intuitive Surgical has been growing its top line by double digits at a fairly consistent pace. And over the past 12 months, it has experienced an acceleration. During the fourth quarter of 2025, which covered the last three months of the year, its revenue rose by 19%, totaling just under $2.9 billion. That's a higher rate than what it was averaging just a few years ago, as you can see from the chart below.

ISRG Revenue (Quarterly YoY Growth) Chart

ISRG Revenue (Quarterly YoY Growth) data by YCharts

The robotic-assisted surgery market is still in its early growth stages, and there could be significantly more growth ahead for Intuitive Surgical, which is why it can make for a compelling long-term investment to hang on to.

Is Intuitive Surgical stock a bargain buy?

At less than $500, Intuitive's stock is trading at a price-to-earnings multiple of more than 60. And on a forward basis, based on analyst projections, it's trading at around 50 times its estimated future profits. These are hefty multiples, which effectively price in a lot of future growth for the business. By comparison, the average stock on the S&P 500 trades at 25 times its trailing earnings, and the multiple drops to 22 when looking at future earnings.

While I wouldn't call the stock a bargain at this kind of a valuation, I do think there is potential for it to be a good long-term investment -- but only if you're prepared to hold on for several years, as there can be tremendous growth ahead for Intuitive in the future.

Although its price point has come down to less than $500, this is still the type of investment you're going to need to be patient with, as Intuitive's high valuation could make it vulnerable to more of a decline, especially if there's a correction in the market. But for long-term investors, Intuitive could make for a good growth stock to simply buy and forget about.

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David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intuitive Surgical. The Motley Fool recommends the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.

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Source: “AOL Money”

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