Intuitive Surgical Inc. (NASDAQ:ISRG) Presents a High-Growth Momentum and Technical Breakout Setup

For investors looking to join solid fundamental growth with well-timed technical entry points, a multi-factor screening method can be a useful instrument. One such process selects for stocks that display firm high-growth momentum traits while also showing a favorable technical arrangement. This includes screening for securities with a high ChartMill High Growth Momentum (HGM) Rating, which identifies quickening earnings and sales, together with high Technical (TA) and Setup Ratings, which indicate a sound uptrend and a tightening price formation ready for a possible breakout. This combination tries to find companies not just increasing at a notable rate but also trading in a way that implies the market could be getting ready for its next upward move.

A present candidate coming from this screen is Intuitive Surgical Inc. (NASDAQ:ISRG), the leader in robotic-assisted surgery. The company's latest results and technical position present an interesting example for this joined growth-and-momentum plan.

High Growth Momentum Fundamentals

The center of the plan looks for companies showing forceful and often quickening business momentum. Intuitive Surgical's fundamental picture matches several important growth measures assessed by the HGM Rating.

• Firm Earnings and Sales Growth: The company has reported considerable year-over-year growth. Trailing twelve-month (TTM) EPS increased over 28%, while TTM revenue rose by more than 22%. Latest quarterly performance stays firm, with the last quarter showing EPS growth of 30.4% and sales growth of 22.9% compared to the same time last year.
• Positive Earnings Surprises: Regularity in exceeding analyst forecasts is a sign of momentum. ISRG has reported positive EPS surprises in each of the last four quarters, with an average beat of 13.5%. It has also surpassed revenue estimates in all four periods.
• Growing Profitability: Beyond revenue growth, getting better margins show operational effectiveness and pricing strength. The company's profit margin in the most recent quarter was 28.1%, showing growth from the 26.98% margin reported in the previous quarter.
• Analyst Confidence: Future-looking analyst opinion is positive, with the average EPS estimate for the next fiscal year adjusted higher by about 5.8% over the last three months.

These items add to ISRG's HGM Rating of 6, meaning a good fundamental growth picture that meets the requirement for momentum-centered plans. The mix of firm historical growth, dependable earnings beats, and positive estimate changes implies the company's operational momentum is being acknowledged and supported by the market.

Technical Firmness and Setup Condition

While fundamental momentum finds the "what" to buy, technical analysis aids with the "when." A high TA Rating verifies the stock is in a sound uptrend, while a high Setup Rating implies it is tightening within that trend, possibly giving a lower-risk entry point. ISRG does very well on both points, with a TA Rating of 9 and a Setup Rating of 8.

A detailed technical analysis report points out the stock's technical energy. Both the long-term and short-term trends are rated as positive, and the stock is doing better than most of its peers in the Health Care Equipment & Supplies industry. More significantly for timing, the report states "reduced volatility while prices have been tightening in the most recent period."

• Tightening Within a Trend: After a large rise, the stock has been trading in a set range over the past month, letting it absorb its gains. This tightening stage is what creates the high Setup Rating.
• Set Support and Resistance: The analysis finds clear support close to the $550 level and resistance just above $565. A breakout above this resistance area could mark the restart of the main uptrend.
• Supportive Market Environment: This technical arrangement happens while the wider S&P 500 keeps a positive short-term trend, giving a helpful setting for breakout tries.

This technical view is exactly what the screening method looks for: a fundamentally firm company pausing inside a forceful uptrend, forming a possible base for its next action.

A Merging Chance for Momentum Investors

For investors using a high-growth momentum plan, Intuitive Surgical offers a merging of wanted features. The company's fundamental driver—propelled by the use of its da Vinci and Ion systems—is active, as shown by firm growth measures and analyst increases. At the same time, its stock chart shows this firmness but is currently wound in a tightening formation, giving a technically set level for entry if the breakout happens.

This match is the goal of the joined screen: to sort the market for companies where forceful business momentum is reflected by a stock price that is both trending positively and forming a clear setup, thus trying to match the quality of the company with the quality of the possible trade.

Interested in examining other stocks that meet these requirements for high growth momentum and technical breakout arrangements? You can run the screen yourself using this pre-configured link.

,

Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. The analysis is based on data provided and should not be the sole basis for an investment decision. Always conduct your own due diligence and consider consulting with a qualified financial advisor before making any investment. Past performance is not indicative of future results.