10 Best Medical Device Stocks To Buy According to Hedge Funds

4. Intuitive Surgical, Inc. (NASDAQ:ISRG)

Number of Hedge Fund Holders: 82

Intuitive Surgical, Inc. (NASDAQ:ISRG) has an elaborate ecosystem of services and products that provides robotic-assisted surgical solutions and invasive care. Its products include the Ion Endoluminal and the Da Vinci Surgical systems. In 2024, Intuitive Surgical, Inc. (NASDAQ:ISRG) expanded its installed system base to 9,902, reflecting a 15% growth. It also grew its number of performed procedures by 17%, showing its technology’s global adoption.

Its fiscal Q4 2024 results also showed considerable growth, with Da Vinci procedures increasing by 18%. Overall revenue also increased by 25% to $2.41 billion, beating the consensus of $2.24 billion. Intuitive Surgical, Inc. (NASDAQ:ISRG) holds a significant position in the surgical robotics market. According to Grand View Research, the surgical robotics market is expected to grow at a compound annual growth rate of 9.5% until 2030. The global market is anticipated to be worth around $7.4 billion by then, up from $4.3 billion last year. The market holds potential for growth in the coming years and decades, supported by the rapid advancement of healthcare technologies.

Intuitive Surgical, Inc.’s (NASDAQ:ISRG) management has expressed optimism for 2025, expecting a 13%-16% growth in worldwide da Vinci procedures. This optimism comes after the Food and Drug Administration granted clearance to Intuitive Surgical, Inc.’s (NASDAQ:ISRG) newest-generation da Vinci 5, an advanced system that combines a more digital interface with machine learning capabilities and AI. The company ranks fourth on our list of the 10 best medical device stocks to buy according to hedge funds.

Baron Health Care Fund stated the following regarding Intuitive Surgical, Inc. (NASDAQ:ISRG) in its Q2 2024 investor letter:

“Intuitive Surgical, Inc. (NASDAQ:ISRG) manufactures the da Vinci Surgical System, a robotic surgical system used for minimally invasive procedures. The stock performed well due to excitement about the company’s new robotic surgical system, the da Vinci 5, which offers enhanced imaging, force feedback, and other improvements. We continue to believe Intuitive has durable competitive advantages and will remain the market leader in robotic surgery. We think the company has a long runway for growth as more procedures are performed with the company’s equipment.”