Motley Fool: Robotic surgery

Many people would love to invest in robotic surgery leader Intuitive Surgical, but its shares are rather steeply valued now, with a recent forwardlooking price-to-earnings (P/E) ratio of 54.

Instead, consider Medtronic (NYSE: MDT), whose Hugo robotic surgery system has been approved in the U.S. for urological procedures. (The company is also a leader in cardiac devices, spinal products, insulin pumps and more.) Medtronic’s forward P/E was recently under 17, making its shares more appealingly priced.

The Hugo system may boost Medtronic’s growth while it tries to streamline by focusing on its most profitable products. (It’s planning to spin off its diabetes business this year.) Medtronic also had more than 170 clinical trials underway in fiscal year 2025, when it plowed $2.7 billion into research and development.

In its second quarter of fiscal 2026 (which ended Oct. 24), Medtronic posted revenue of $9 billion, up 6.6% year over year, with net income rising 8%. Chief financial officer Thierry Pieton upped estimates of near-term growth, citing “our outperformance in the first half of the year and confidence … in our revenue growth acceleration.”

Medtronic has a proven track record of success, with 48 consecutive annual dividend increases. Its dividend recently yielded a plump 2.8%. Long-term investors may want to take a closer look. (The Motley Fool owns shares of and recommends Intuitive Surgical and recommends Medtronic.)

My smartest investment

One of the smartest financial moves I’ve made is to help my son. When he worked during college breaks, his dad and I would match the money he earned and have him deposit it into an individual retirement account. Now that I have a grandson, we have helped him the same way by partially contributing to his Roth IRA. – R.P., via email

The Fool Responds: That’s a great move indeed! Most of us need to be saving in earnest for our retirements, and starting early is one of the best strategies for that. A teen or 20-something might have little interest in saving for retirement, but any money they sock away may be able to grow for them for 40 or 50 years. If a $1,000 investment grows for 50 years at 8%, it will become nearly $47,000; if money is added over time, that investment could become a huge sum. And if the money is growing in a Roth IRA, it can be withdrawn in retirement taxfree. That’s a big plus.

Helping your young ones can make a big difference, as it’s often hard for anyone at any age to save and invest meaningful sums. It’s also a smart way to possibly get the next generation(s) interested in investing!

(Do you have a smart or regrettable investment move to share with us? Email it to TMFShare@ fool.com.)

Ask the fool

Q. What does “OTC” mean? – E.L., Forest Hills, Michigan

A. The letters stand for “over the counter.” While thousands of securities trade on the New York Stock Exchange or Nasdaq Stock Market, thousands of others are traded over the counter in the U.S. – meaning not on a major stock exchange. Those typically belong to small companies that don’t meet the listing requirements for a major exchange, although some big-name international stocks can also be listed in the OTC market.

There are three main systems handling OTC stocks; Pink Sheets is the one most likely to include shadier companies. Learn more at Fool.com/investing/stock-market/exchange/otc-markets.

Q. What’s a “SaaS” company? – D.K., Fort Myers, Florida

A. The letters stand for “software as a service.” SaaS companies offer cloud-based software delivery to businesses and individuals, often via subscriptions. So instead of buying and downloading a software package, they pay for on-demand access to it. This makes updating easy and leaves the SaaS companies with the responsibility of storing customer data and keeping it safe.

Some examples of SaaS include tax-preparation software, Zoom video conferencing, Dropbox storage, Docusign, Mailchimp and even Netflix and Spotify. Some years ago, Microsoft shifted its dominant Office suite (featuring Word, Excel, Outlook and more) to a subscription, and therefore SaaS, model.

Investors tend to like the business model because it means customers must sign up to make regular subscription payments, which results in fairly dependable revenue for a SaaS company. It can also mean a costly hassle for customers to switch to an alternate vendor, keeping them loyal. But customers do benefit by not having to repeatedly buy, install and update software they use.