Looking out for excellent stocks to buy in a bull market has its downsides. For instance, it’s harder to search out deep discounts during a bull run. Nevertheless, that isn’t an infinite problem provided investors put their hard-earned money in corporations which will perform well over the long run.
For those on the market for nice corporations with excellent prospects, let’s consider two options: Intuitive Surgical (NASDAQ: ISRG) and DexCom (NASDAQ: DXCM). Here is why putting $1,000 into one (or each) of those corporations could possibly be a incredible move.
1. Intuitive Surgical
Intuitive Surgical is a highly progressive medical device company best known for its da Vinci System, a robotic-assisted surgery (RAS) device. These machines allow physicians to perform minimally invasive surgeries that rely upon small incisions and tiny instruments that can be manipulated with precision. A majority of those procedures have advantages over open surgeries, where doctors make large enough cuts to patients’ skin to have a full view of the inside organs involved inside the procedures.
Minimally invasive surgeries result in less scarring, faster recoveries, and shorter hospital stays. Yet, as of last yr, fewer than 5% of procedures that might possibly be performed robotically were. That is great news for Intuitive Surgical’s future: The company has miles of growth left ahead. Inside the meantime, it continues to strengthen its ecosystem. Intuitive Surgical ended 2023 with an installed base of 8,606 da Vinci systems, an increase of 14% yr over yr.
The company’s revenue of $7.1 billion increased by 14.5% yr over yr, while its adjusted earnings per share (EPS) of $5.71 jumped by 22% as compared with 2022. Intuitive Surgical did encounter some issues currently, including pandemic-related decreases in procedure volume and the rise of weight-loss medicines last yr that will decrease the demand for weight-loss surgeries. Nevertheless, neither obstacle should matter much over the long run.
The pandemic was an exceedingly rare event, and, at any rate, Intuitive Surgical has bounced back. The entire outbreak did was create a backlog of elective surgeries waiting to be performed. “Elective” here doesn’t suggest “optional.” It simply means “can be scheduled prematurely.” A mastectomy to treat breast cancer counts as an elective surgery. That’s the reason pandemic-related troubles won’t haunt Intuitive Surgical ad infinitum.
And while the increased popularity of GLP-1 medicines like Ozempic is having an impact, Intuitive Surgical estimates that weight-loss surgeries make up between 4% and 5% of total procedures worldwide. Given the big whitespace remaining inside the RAS market, that is not going to matter an excessive amount of over the following 10 years and beyond. The stock has crushed the market over the past decade and will do it again.
With $1,000, investors can get two shares of the company with a great deal of change left.
2. DexCom
DexCom, one other medical device marker, focuses on developing products that help diabetes patients. The company’s suite of continuous glucose monitoring (CGM) systems allows those with diabetes to trace their blood sugar levels practically in real time. DexCom’s G6, one among its top products, could make measurements as often as every five minutes. In contrast, blood glucose meters are operated by hand, use painful fingersticks, and only tell patients’ blood glucose levels at a particular time.
It’s no wonder that CGM devices have gained significant traction currently. They’re the more convenient option and as well as result in raised health outcomes for diabetes patients. As one among the two leaders inside the CGM space, DexCom’s revenue and earnings have grown rapidly. Last yr, the company’s top line of $3.62 billion increased by 24% yr over yr. The adjusted EPS of $1.52 was up 74.7% as compared with the previous fiscal yr.
DexCom will also be presupposed to be struggling attributable to increased reliance on weight-loss medicines popular amongst diabetes patients. Their success will decrease the need for CGM devices, or so the argument goes. Nevertheless, that argument is almost actually off the mark. As DexCom argues, physicians prescribe GLP-1 therapies along with CGM gadgets for best results. These are complementary products that help diabetes patients live their healthiest lives.
DexCom’s future is secure, especially considering that greater than half a billion adults worldwide now have diabetes, just 1% of whom use CGM. A substantial percentage of this population is beyond DexCom’s reach immediately since they’re positioned in developing countries. Nevertheless, the company has long sought to expand its footprint. Last yr, DexCom finally entered the Latin American market through Argentina.
At any rate, there could also be a great deal of growth left even inside DexCom’s existing addressable market, including inside the U.S., one among the more penetrated CGM regions. Briefly, DexCom can proceed riding the wave of the CGM revolution for years. The stock should deliver excellent returns along the best way wherein.
Investors can get their hands on eight shares of the company with $1,000 at current levels.
Must you invest $1,000 in Intuitive Surgical immediately?
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Prosper Junior Bakiny has positions in Intuitive Surgical. The Motley Idiot has positions in and recommends Intuitive Surgical. The Motley Idiot recommends DexCom. The Motley Idiot has a disclosure policy.
Adding $1,000 to These Top Growth Stocks Would Be a Good Move was originally published by The Motley Idiot