Between a take-no-prisoners valuation and the ongoing challenges of the pandemic, I'm not altogether surprised that Intuitive Surgical (ISRG) shares have lagged a bit since my last update, underperforming the market, the broader med-tech segment and specific comps like Medtronic (MDT) and Stryker (SYK). The biggest challenge for Intuitive Surgical remains the obvious one - the chaos and uncertainty created by the pandemic, and the uncertain timeline back to normalization for procedures and hospital capital spending.
I wasn't bullish on Intuitive before, solely due to valuation, and that remains the case now. Valuation has long been robust here and that hasn't prevented the stock from performing quite well over time (a trailing 10-year annualized return of over 20%). While I certainly believe that premium valuation is not an impediment to further gains provided the growth stays strong, Intuitive just doesn't fit for my investment approach today.
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