A common task for investors is finding companies that have good basic business qualities and also show positive price movement. One way to do this is by using both fundamental and technical analysis, looking for stocks with good growth, earnings, and financial condition that are also moving out of stable price ranges. This method tries to find companies with good future potential at a time when market opinion is improving, which may mark the beginning of a new upward price move.
Intuitive Surgical Inc (NASDAQ:ISRG) is a leading example found through this kind of filtering process. The company, an innovator and top firm in robotic-assisted minimally invasive surgery, has created a full system around its da Vinci and Ion products. This filter searched for stocks showing good growth measures, acceptable earnings and condition scores, and a high technical setup score pointing to a possible price move upward.
Fundamental Strength: The Growth Driver
The fundamental argument for Intuitive Surgical is strong, as shown in its detailed fundamental analysis report. The company receives a good overall fundamental score of 7 out of 10, supported by high scores in Growth (8) and Profitability (8), with a good Health score of 7. These three areas are the center of a good growth investment.
- Strong Growth Path: ISRG shows forceful growth. Over the last year, Revenue increased 22.18% and Earnings Per Share (EPS) rose 28.12%. Importantly, this is not a single event; the company has maintained an average yearly revenue growth of 13.27% and EPS growth of 11.48% over recent years. Experts predict this pace will persist, with estimated yearly EPS growth of 15.47% and revenue growth of 14.12% in the next years.
- High Earnings and Margins: The company’s growth produces high earnings. It has top-level margins, with a Profit Margin of 28.58% and an Operating Margin of 29.44%, doing better than over 96% of similar companies in the Health Care Equipment & Supplies field. Its Return on Invested Capital (ROIC) of 14.96% is also in the top group, showing effective use of money.
- Very Good Financial Condition: A main point of strength is ISRG’s excellent balance sheet. The company has no debt, leading to a Debt/Equity ratio of zero. Along with a good Current Ratio of nearly 5.0, this shows great financial freedom and low chance of failure, letting it spend on new ideas and handle economic slowdowns.
These fundamental traits are exactly what the filtering plan looks for. Good, steady growth supports a higher price, high earnings makes sure the growth lasts and benefits shareholders, and very good financial condition gives a safety buffer and operational steadiness.
Technical Setup: The Timing Indicator
While fundamentals decide what to buy, technical analysis can give hints on when. Based on its technical analysis report, ISRG shows a positive chart view with a high technical score of 8 and an equally good setup score of 8.
- Positive Trend Agreement: Both the short-term and long-term trends for ISRG are positive, with the stock price above its important moving averages (20-day, 50-day, 100-day). This agreement points to continued buying interest.
- Stable Range and Possible Price Move: The stock has been trading in a stable range over the last month, which has lowered price swings. A notable resistance point is seen near $595.56. A clear move above this point could show a move out of the stable phase, possibly starting a new upward period.
- Support and Risk Control: The technical analysis finds a clear support area between $546.70 and $561.65, made by a combination of trend lines and moving averages. This gives a reasonable level for setting risk, since a drop below this area would damage the positive argument. A recent "Pocket Pivot" signal, where the stock rose on higher trading volume than any down volume day in the earlier period, adds to the signs of buying interest.
This technical picture is important to the combined plan. It finds a stock with good fundamentals that is not stuck but is instead gathering energy for a possible upward move, offering a clearer plan for entry and exit.
Valuation Points
The main point for investors is price level. ISRG sells at a high price, with a Price/Earnings (P/E) ratio of 66.61, which is above the wider market average. However, this is explained by two points noted in the fundamental report. First, the ratio is actually lower than around two-thirds of similar companies in its field, meaning the high price is normal for high-growth medical technology. Second, the high price is backed by the company's excellent earnings and its increasing, double-digit growth path. The price level shows the market's payment for quality and future growth hopes, not just guessing.
A Joining Chance
Intuitive Surgical shows a situation where fundamental strength and technical placement join. The company leads the increasing robotic surgery market, performs with high earnings, and keeps a very strong balance sheet. Technically, it is coming out of a time of stable prices with positive trends holding, suggesting large investor interest and a possible price move upward. For investors using a growth-with-movement plan, ISRG presents a strong profile: a high-quality business seeming ready for a technically-important move.
This review of Intuitive Surgical came from a filter made to find just this kind of chance. You can review other stocks now matching this "Strong Growth Stocks with Good Technical Setup" description by using this pre-set stock filter.
Disclaimer: This article is for information only and is not financial advice, a suggestion, or an offer or request to buy or sell any investments. The information given is based on supplied data and should not be the only reason for an investment choice. Investing has risk, including the possible loss of the original amount. Always do your own research and think about talking with a qualified financial advisor before making any investment choices.
