Fundamental Short Selling Research

Eric Fernandez, CFA

TwoRiversAnalytics

Equity Bottom-Up

<ul>
<li>This model looks for slowing growth, margin declines, sales and/or earnings disappointments, troubling working capital trends, poor estimate trends or lowered guidance, among other characteristics.</li>
<li>The key judgement is whether a slowdown is temporary or the beginning of a trend.  These shorts tend to have high valuations and betas.  Multiple compression accelerates the stock’s decline.</li>
<li>Today we are flagging Outset Med., NVIDIA, Intuitive Surgical, Plug Power</li>
</ul>


This model looks for slowing growth, margin declines, sales and/or earnings disappointments, troubling working capital trends, poor estimate trends or lowered guidance, among other characteristics.
The key judgement is whether a slowdown is temporary or the beginning of a trend.  These shorts tend to have high valuations and betas.  Multiple compression accelerates the stock’s decline.
Today we are flagging Outset Med., NVIDIA, Intuitive Surgical, Plug Power


Breaking Growth Short Candidates:  Outset Med., NVIDIA, Intuitive Surgical, Plug Power

<ul>
<li>This model looks for slowing growth, margin declines, sales and/or earnings disappointments, troubling working capital trends, poor estimate trends or lowered guidance, among other characteristics.</li>
<li>The key judgement is whether a slowdown is temporary or the beginning of a trend.  These shorts tend to have high valuations and betas.  Multiple compression accelerates the stock’s decline.</li>
<li>Today we are flagging: Shopify, Snowflake, Intuitive Surgical, and ServiceNow</li>
</ul>


This model looks for slowing growth, margin declines, sales and/or earnings disappointments, troubling working capital trends, poor estimate trends or lowered guidance, among other characteristics.
The key judgement is whether a slowdown is temporary or the beginning of a trend.  These shorts tend to have high valuations and betas.  Multiple compression accelerates the stock’s decline.
Today we are flagging: Shopify, Snowflake, Intuitive Surgical, and ServiceNow


Breaking Growth Short Candidates: Shopify, Snowflake, Intuitive Surgical, ServiceNow

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>
<a href="https://www.smartkarma.com/entities/intuitive-surgical-inc" target="_blank" data-smartkarma-citation="entities:15853:1" rel="noopener">Intuitive Surgical (ISRG US)</a> reported Q2 results, which missed expectations. Overall performance was impacted by COVID-19 resurgence and macro headwinds including inflation and supply chain constraint.</li>
<li>Despite lockdowns in its second biggest market of China, the company reported worldwide da Vinci procedures growth of 14% y/y, in-line with earlier full-year guidance range of 12–16%.</li>
<li>With China showing signs of recovery, Intuitive now expects worldwide da Vinci procedures to grow 14.0–16.5% in 2022. However, soft U.S. hospital capex remains an area of concern.  </li>
</ul>



Intuitive Surgical (ISRG US) reported Q2 results, which missed expectations. Overall performance was impacted by COVID-19 resurgence and macro headwinds including inflation and supply chain constraint.
Despite lockdowns in its second biggest market of China, the company reported worldwide da Vinci procedures growth of 14% y/y, in-line with earlier full-year guidance range of 12–16%.
With China showing signs of recovery, Intuitive now expects worldwide da Vinci procedures to grow 14.0–16.5% in 2022. However, soft U.S. hospital capex remains an area of concern.  


Intuitive Surgical (ISRG US): Q2 2022 Results Missed Expectations; Raised Procedure Growth Guidance

<ul>
<li>This model looks for slowing growth, margin declines, sales and/or earnings disappointments, troubling working capital trends, poor estimate trends or lowered guidance, among other characteristics.</li>
<li>The key judgement is whether a slowdown is temporary or the beginning of a trend.  These shorts tend to have high valuations and betas.  Multiple compression accelerates the stock’s decline.</li>
<li>Today we are flagging Repligen, Snap, Dynatrace Inc, Intuitive Surgical</li>
</ul>


This model looks for slowing growth, margin declines, sales and/or earnings disappointments, troubling working capital trends, poor estimate trends or lowered guidance, among other characteristics.
The key judgement is whether a slowdown is temporary or the beginning of a trend.  These shorts tend to have high valuations and betas.  Multiple compression accelerates the stock’s decline.
Today we are flagging Repligen, Snap, Dynatrace Inc, Intuitive Surgical


Breaking Growth Short Candidates: Repligen, Snap, Dynatrace, Intuitive Surgical

<ul>
<li>
<a href="https://www.smartkarma.com/entities/intuitive-surgical-inc" target="_blank" data-smartkarma-citation="entities:15853:1" rel="noopener">Intuitive Surgical (ISRG US)</a> Q1 revenue and EPS beat consensus. High-teens procedure volume growth is the brightest spot and management raised full-year 2022 procedure growth guidance to 12–16%.</li>
<li>After a strong placement in last couple of quarters, Intuitive is seeing some near-term softening of its system placement pipeline in the U.S.</li>
<li>In near-term, macro headwinds including regional waves of COVID, staffing pressure at hospitals, component and raw material availability, and logistic delays will remain biggest overhang for the company.</li>
</ul>



Intuitive Surgical (ISRG US) Q1 revenue and EPS beat consensus. High-teens procedure volume growth is the brightest spot and management raised full-year 2022 procedure growth guidance to 12–16%.
After a strong placement in last couple of quarters, Intuitive is seeing some near-term softening of its system placement pipeline in the U.S.
In near-term, macro headwinds including regional waves of COVID, staffing pressure at hospitals, component and raw material availability, and logistic delays will remain biggest overhang for the company.


Intuitive Surgical (ISRG US): 1Q22 Review- Procedure Volume Growth Overshadowed by Macro Headwinds

United States

Intuitive Surgical, Inc. design, manufactures, and markets surgical systems. The Company offers endoscopes, endoscopic retractors and disectors, scissors, scalpels, forceps, needle holders, electrocautery, ultrasonic cutters, and accessories during surgical procedures. Intuitive Surgical operates worldwide.

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Intuitive Surgical (ISRG US)

Breaking Growth Short Candidates: Outset Med., NVIDIA, Intuitive Surgical, Plug Power

Breaking Growth stocks combine declining fundamentals with a multiple compression. This week we flag: Outset Med., NVIDIA, Intuitive Surgical,...

Eric Fernandez, CFA

Breaking Growth Short Candidates: Shopify, Snowflake, Intuitive Surgical, ServiceNow

Breaking Growth stocks combine declining fundamentals with a multiple compression. This week we flag: Shopify, Snowflake, Intuitive Surgical, and...

Eric Fernandez, CFA