The stock market has been a volatile place over the past few months, with the S&P 500 shifting from gains to losses. The market didn’t exactly crash, but at certain points, it may have felt like a crash was imminent. Investors worried about the economy, the pace of interest rate cuts, and conflict in Iran — and against this backdrop, concerns also grew about companies’ investments in artificial intelligence (AI). The question was: Will future revenue justify such levels?
All of this has weighed on investors’ minds and their appetite for stocks. Even though the market has rebounded in recent days, with the S&P 500 reaching a new high, many stocks remain lower — and in some cases, at very interesting valuation levels. After the recent market turmoil, let’s check out two healthcare stocks worth loading up on at a discount.
Image source: Getty Images.
1. Intuitive Surgical
Intuitive Surgical (ISRG +2.43%) is the world’s leading robotic surgery company, with a family of devices that help surgeons complete a wide variety of minimally invasive procedures. This is the Da Vinci surgical robot, and hospitals can buy or lease one of four models — from a value-oriented option to the latest release, the Da Vinci 5. This new product offers 10,000 times the computing power of its predecessor and 150 design innovations.
So, Intuitive offers customers a variety of choices to suit different priorities and budgets. Still, the Da Vinci remains a significant investment, with a recent model generally representing well over $1 million. This is positive because it helps Intuitive maintain a moat or competitive advantage. When a hospital invests in a Da Vinci, it’s likely to stick with it for quite some time. Another part of the Intuitive moat is that most surgeons have trained on the Da Vinci, so are familiar with the device — as a result, they may choose the Da Vinci over rivals.
Today’s Change
(2.43%) $11.13
Current Price
$469.21
Key Data Points
Market Cap
$167B
Day’s Range
$463.02 – $474.28
52wk Range
$427.84 – $603.88
Volume
4K
Avg Vol
1.9M
Gross Margin
65.98%
Intuitive has proven that its market leadership also translates into earnings growth. And the recent quarter illustrated the ongoing strength of this company. Revenue increased 19%, and Da Vinci procedures climbed 17% — procedure growth is important because hospitals must order instruments and accessories, creating a recurrent revenue stream.
Intuitive, considering its solid moat and track record, is never cheap — but it is trading at an interesting discount today at 45x forward earnings estimates, down from 60x earlier this year.
2. Abbott Laboratories
Abbott Laboratories (ABT +1.40%) is a great healthcare stock to own for two reasons: its diversified business and its commitment to dividend payments. Let’s start with diversification. Abbott operates four business units: medical devices, diagnostics, established pharmaceuticals, and nutrition.
What I like about this is that it offers the company and its investors a certain sense of safety. If one business faces headwinds, another may compensate. For example, during early pandemic days, diagnostics soared, and this helped cushion declines in medical devices. These days, the medical devices business is driving growth.
Today’s Change
(1.40%) $1.34
Current Price
$96.81
Key Data Points
Market Cap
$169B
Day’s Range
$94.87 – $97.14
52wk Range
$93.92 – $139.06
Volume
6.3K
Avg Vol
12M
Gross Margin
58.86%
Dividend Yield
2.52%
Abbott’s units also include many leading products, from the FreeStyle Libre continuous glucose monitor to Ensure nutrition drinks. These, along with a broad portfolio of products, have helped the company increase earnings over time.
At the same time, Abbott’s free cash flow levels support something that investors love, and that’s dividend growth.
ABT Free Cash Flow data by YCharts
Abbott is a Dividend King, meaning it’s lifted its dividend for at least 50 consecutive years. This is a very important point because it shows that rewarding shareholders — and steadily increasing these rewards — is a key part of the company’s strategy. So when you buy Abbott shares, you can count on passive income from the investment.
Let’s consider valuation. The stock is trading at 17x forward earnings estimates, down from more than 22x in the early days of 2026. And this discount level makes Abbott a fantastic healthcare stock to buy today after the recent market turbulence.