Investors in robotic surgery pioneer Intuitive Surgical (NASDAQ:ISRG) had a nice 2016. The company’s stock rose by more than 15% during the year, which was a strong enough performance to outpace both the S&P 500 and the iShares U.S. Medical Devices ETF (NYSEMKT:IHI).
One downside to the bullish move is that Intuitive’s price-to-earnings ratio has been pushed above 35. That’s a premium valuation that could cause many investors to stay on the sidelines.
