Netflix (NASDAQ: NFLX) and Intuitive Surgical (NASDAQ: ISRG) are leaders in their respective industries, and have produced market-beating returns over long periods. Some might argue that the best is in the rearview mirror for these corporations, considering how well they've performed in the past.
However, Netflix and Intuitive Surgical can still deliver. Here's why these stocks could turn $1,500 into $5,000 in the next 10 years -- meaning a compound annual growth rate (CAGR) of 12.8% and a return of about 233%.
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Netflix is a pioneer in the streaming industry, but it now faces a very different landscape than it did in the 2010s when its stock produced life-changing results. The number of streaming platforms has increased substantially, so there's now far more competition than before, including from some of the largest media companies in the world. However, the industry still looks underpenetrated, as odd as that may sound. Streaming has yet to capture 50% of television viewing time even in the U.S., one of the most advanced markets.
In other countries, there's even more white space. Netflix estimates a $650 billion revenue opportunity where it does business, and it's barely scratched the surface of this large market. In 2024, it reported revenue of about $39 billion, an increase of 15.6% year over year. The company will share this large market with other leaders in the industry, but even with the competition, the smart money is on Netflix, which is one of the major winners as TV viewing increasingly switches to streaming.
Netflix has a strong moat based on at least two factors. First, there's its brand name, which is nearly synonymous with streaming -- people often say "Netflix" when they mean some other streaming platform. Strong brand names help attract and retain customers. Second, Netflix benefits from the network effect. The more viewers in its ecosystem -- and the more time they spend streaming -- the more data on viewing habits it can use to steer its content production strategy.
Netflix ended 2024 with 301.6 million paid memberships, an increase of 16% year over year. While it will stop reporting this metric on a quarterly basis, the company's large ecosystem should remain a strength. Netflix's vast growth opportunities and competitive edge place it in a good position to deliver market-beating returns through the next 10 years -- so that 12.8% CAGR is within its reach.
Thanks to its da Vinci system, Intuitive Surgical is the undisputed market leader in robotic-assisted surgery (RAS). It's been a pioneer in this industry, but the competition is now mounting. Medtronic is inching closer to launching its robot system, Hugo, in the U.S. (it's already in use in several other countries). Johnson & Johnson also has one in the works.
So, the next decade will likely look different for Intuitive Surgical than the past. However, its prospects remain attractive. The medical device specialist has spent the past two decades testing and earning clearance for its crown jewel across various indications, from general surgeries to cardiac procedures, hysterectomies, urologic procedures, and more. It will take time for newcomers to the field to go through all the clinical trials, regulatory submissions, regulatory approvals, and marketing efforts needed to challenge Intuitive Surgical across all these markets.
Furthermore, the RAS field looks severely underpenetrated. Robot devices allow physicians to perform minimally invasive procedures that are easier on the patient, since there's less skin cutting (RAS uses tiny instruments), less bleeding, and less scarring. Yet, as of nearly two years ago, fewer than 5% of procedures that could be performed robotically were. Intuitive will benefit from the increased adoption of RAS.
The company's financial results remain excellent. In 2024, revenue increased by 17% year over year to $8.4 billion. Last year Intuitive also received regulatory clearance for the fifth generation of its da Vinci system, which comes with a range of improvements over its predecessors.
Intuitive Surgical is still innovating. That's another critical reason it can keep the top spot in the RAS market through the next decade, while delivering a performance that can turn $1,500 into $5,000 (or more).
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Prosper Junior Bakiny has positions in Intuitive Surgical and Johnson & Johnson. The Motley Fool has positions in and recommends Intuitive Surgical and Netflix. The Motley Fool recommends Johnson & Johnson and Medtronic and recommends the following options: long January 2026 $75 calls on Medtronic and short January 2026 $85 calls on Medtronic. The Motley Fool has a disclosure policy.