5 Best Automation Stocks To Buy Now

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

Number of Hedge Fund Holders: 69

Intuitive Surgical, Inc. (NASDAQ:ISRG) is a California-based company that develops, manufactures, and markets products enabling physicians and healthcare providers to improve the quality of and access to minimally invasive care in the United States and internationally. The company’s systems allow surgeons to perform delicate and complex operations through a few small incisions with robotic assisted surgery. It is one of the best automation stocks to invest in. Intuitive Surgical, Inc. (NASDAQ:ISRG) grew its Da Vinci Surgical System installed base to 7,364 systems as of September 30, 2022, an increase of 13% compared to 6,525 as of the end of the third quarter of 2021.

On December 5, BTIG analyst Ryan Zimmerman raised the price target on Intuitive Surgical, Inc. (NASDAQ:ISRG) to $316 from $247 and maintained a Buy rating on the shares as part of a broader research note on Medical Technology. 2023 is set to be an improved year for the industry following the underperformance in 2022 due to high oil prices, a constrained supply chain, currency headwinds, inflation, and labor shortages, the analyst told investors.

According to Insider Monkey’s data, 69 hedge funds were bullish on Intuitive Surgical, Inc. (NASDAQ:ISRG) at the end of September 2022, compared to 56 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the leading stakeholder of the company, with 4.2 million shares worth $796 million. 

Here is what Baron Funds specifically said about Intuitive Surgical, Inc. (NASDAQ:ISRG) in its Q3 2022 investor letter:

“We added to our position in Intuitive Surgical, Inc. (NASDAQ:ISRG), a medical device company which sells the da Vinci robotic surgical system. The stock declined during the quarter due to a slowdown in systems sales. Hospitals are cutting capex budgets due to higher inflation, higher interest rates, supply-chain challenges, and staffing shortages. Although there is risk that system sales could remain under pressure in the near term, we think solid procedure volume results can continue. We think the long-term outlook for Intuitive is positive based on our view that the company has a long runway to convert more procedures to robotic procedures. During the quarter, the company announced a $1 billion accelerated share repurchase program, which we view as a positive signal about the valuation and business prospects.”