Intuitive Surgical manufactures robots that allow surgeons to perform more precise surgeries. It has a wide moat.
Last year, I wanted to buy the stock at $350, but the stock never went below the $351 and instead surged to about $540. The company announced earnings on 22 Apr after the market closed, that was very disappointing. EPS was $2.67 instead of consensus of $3.34. As a result, many analysts slashed their estimates. Consensus earnings estimates for the year were lowered from $16.70/share to $14.01/share. Applying a P/E of 15 and you get a price of $210. P/E of 20 gives $300. I think estimates have gone too far down, and whatever bad news has been factored in. After earnings, the stock price plunged to below $380 and I entered a buy limit order at $355 which is about where the support level is. This order was today filled. The size of the position is small, a little over 1% of the portfolio, and I will look to add to the position if there is a further price decline, which I totally expect in the wake of the lower earnings, especially if the price drops below the support.
Also, the position has the added benefit of allowing me to have exposure to the healthcare sector, which my portfolio currently lacks.