Coronavirus Spurs Growth for 3 Robotics-Assisted Surgery Stocks

The global economy continues to bear the brunt of the coronavirus pandemic with shares of major companies taking a hit. This was evident as all the benchmark indices worldwide including the Financial Times Stock Exchange (FTSE), Dow Jones Industrial Average and the Nikkei witnessed drastic falls several times since the COVID-19 outbreak began.

The global markets did recover to some extent in late March after the US Senate passed a $2-trillion stimulus package to mitigate the pandemic-induced economic crisis. Also in May-end, there was an unprecedented improvement in the U.S. labor market. Per a MarketWatch.com report, the United States regained 2.5 million jobs last month with the unemployment rate declining to13.3%.

However, a fresh wave of coronavirus cases in the United States and China following a rushed ‘unlocking’ once again diluted the positive sentiment. Per The World Bank’s June report, the global GDP for 2020 is projected to contract 5.2%.

A Glimpse of MedTech Industry Amid COVID-19

In the wake of the widespread manufacturing and supply-chain disruptions,most MedTech companies across various domains reported huge revenue losses in the first quarter of 2020. With the apprehension of a worsening second-quarter performance, most leading companies either slashed or withdrew their guidance for the full year.

Even though prospects for most medical device companies seem bleak at the moment, the COVID-19 syndrome, proved to be a boon for a few in particular. Robotics-assisted surgery is one such sector that is identified as a profitable bet now.

Let us delve deeper:

State of Robotic Surgery Amid COVID-19:

In the face of the pandemic, the robotic-assisted surgery space continues to thrive on the back of a number of positive developments.

The urgency to eradicate contamination risks and curb the exposure of patients and medical workers to the coronavirus is increasingly paving the way for healthcare settings to adopt contactless robotic surgery. Significantly, a well-designed robotic aid can come in handy to perform tasks like taking note of the vital signs of patients, providing comfort care, performing minor procedures as well as delivery and cleaning jobs.

For instance, Intuitive Surgical’s ISRG robot-based da Vinci surgical system enables minimally-invasive surgery that reduces the trauma associated with open surgery. The da Vinci System is powered by robotic technology, which provided the company with a solid exposure to medical mechatronics, robotics and AI for healthcare. In the first quarter of 2020, da Vinci procedures grew 10%, globally, compared with the same period last year. This upside was driven by a progress in U.S. General Surgery procedures and worldwide urologic procedures. In March 2019, the company received the FDA clearance for the use of da Vinci SP surgical system in certain transoral otolaryngology procedures in adults.

3 Stocks in Focus:

Following are the three robotic surgery stocks with a Zacks Rank# 2 (Buy) and 3 (Hold) at present, which have been delivering robust performances of late.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stryker Corporation SYK: This Zacks Rank #3 company’s robotic-arm assisted surgery platform Mako continues to witness strong demand on the back of its unique features and a healthy order book. For 2020, the company’s Mako order book remains solid and is in sync with its strategic aim of steady share gains in both hips and knees. Stryker consistently gains traction from its robotic-arm assisted total knee arthroplasty application, which was launched for use with its Mako System. Notably, it is the first and the only robotic technology to be used for total knee, hip and partial knee replacement procedures.

For 2021, earnings growth rate is anticipated at 41%, comparing favorably with the industry’s average of 24.3%. Also, the company’s PE ratio is less than the industry’s average, indicating that the stock is currently trading cheap.

Stryker Corporation Price

Stryker Corporation Price

Stryker Corporation price | Stryker Corporation Quote

 

Accuray Incorporated ARAY: In June 2020, this currently Zacks #2 Ranked company introduced the CyberKnife S7 System, the next-generation CyberKnife platform. This new CyberKnife technology is the most recent instance of the company’s innovation in radiation therapy that enables healthcare providers to offer the best level of care to their patients owing to new capabilities. Notably, the CyberKnife platform is a fully robotic, non-invasive radiation therapy device, which is able to treat cancerous and benign tumors in the body as well as neurological disorders.

For the first quarter of fiscal 2021, earnings growth rate is anticipated at 81.8%, comparing favorably with the industry’s average of 10.6%.

Accuray Incorporated Price

Accuray Incorporated Price

Accuray Incorporated price | Accuray Incorporated Quote

 

Medtronic plc MDT : In February 2020, this Zacks Rank #3 company acquired Digital Surgery, a London-based privately-held leader in surgical artificial intelligence (AI), data and analytics, and digital education and training. The acquisition of Digital Surgery strengthened Medtronic robotic-assisted surgery platform.The Mazor X Stealth Edition robotics guidance platform, launched in 2019, continues to boost the global major’s Restorative Therapies segment.

For fiscal 2022, earnings growth rate is anticipated at 47%, comparing favorably with the industry’s average of 24.5%. Also, the company’s PE ratio is less than the industry’s average, indicating that the stock is currently trading cheap.

Medtronic PLC Price

Medtronic PLC Price

Medtronic PLC price | Medtronic PLC Quote

 

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

 

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Medtronic PLC (MDT) : Free Stock Analysis Report
 
Stryker Corporation (SYK) : Free Stock Analysis Report
 
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
 
Accuray Incorporated (ARAY) : Free Stock Analysis Report
 
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