Do You Think Intuitive Surgical (ISRG) is Attractively Valued?

Baron Funds, an investment management company, released its “Baron Health Care Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 6.01% compared to a 4.72% decline for the Russell 3000 Health Care Index. The fund’s underperformance in the quarter was attributed to poor stock selection. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Funds highlighted stocks like Intuitive Surgical, Inc. (NASDAQ:ISRG) in the third quarter 2022 investor letter. Headquartered in Sunnyvale, California, Intuitive Surgical, Inc. (NASDAQ:ISRG) manufactures and markets da Vinci Surgical System. On October 17, 2022, Intuitive Surgical, Inc. (NASDAQ:ISRG) stock closed at $190.12 per share. One-month return of Intuitive Surgical, Inc. (NASDAQ:ISRG) was -4.73% and its shares lost 43.47% of their value over the last 52 weeks. Intuitive Surgical, Inc. (NASDAQ:ISRG) has a market capitalization of $67.894 billion.

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 systems 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.”

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Intuitive Surgical, Inc. (NASDAQ:ISRG) is not on our list of 30 Most Popular Stocks Among Hedge Funds.  As per our database, 56 hedge fund portfolios held Intuitive Surgical, Inc. (NASDAQ:ISRG)  at the end of the second quarter, which was 65 in the previous quarter.

We discussed Intuitive Surgical, Inc. (NASDAQ:ISRG) in another article and shared the best robotics stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.