Attractive stocks to buy and hold for the long term tend to possess several key qualities. They are often highly innovative leaders in industries with huge growth potential. And they inevitably have some sort of competitive advantage that allows them to remain successful even in the face of rising competition.
One stock that seems to fit the bill is Intuitive Surgical (ISRG 2.87%). This robotic surgery pioneer gained 8% in 2025 -- underperforming the broader market. But given enough time, it could help investors become millionaires. Here's why.
The leader in robotic-assisted surgery
Intuitive Surgical introduced its renowned da Vinci system over 25 years ago. It was the first of its kind to receive clearance in the U.S., demonstrating the company's innovative capabilities.
Since then, the company has implemented plenty of updates to the device. It launched its fifth iteration last year, with new and improved features.
Image source: Getty Images.
Thanks to its first-mover advantage and constant innovations, Intuitive Surgical has established itself as the leader in robotic-assisted surgery (RAS) in a wide range of procedures that would otherwise require traditional operations. The da Vinci system assists surgeons in performing minimally invasive procedures that rely on small incisions and specialized tools to achieve the desired results with minimal scars. It is cleared for urological, gynecological, and some cardiac surgeries, among other uses.
Staying ahead of the competition
One reason Intuitive Surgical underperformed in 2025 is that one of its peers in the medical device market, Medtronic, completed clinical trials for a competing RAS system, the Hugo, in urological procedures, and recently earned clearance in this indication. Medtronic will seek more approvals for its Hugo system, including in hernia repairs.
Intuitive Surgical will face tougher competition from here on out. However, it is well equipped to handle it and still perform well over the long run for three reasons.
First, it has a large list of approved uses and a significant installed base. Both are constantly growing. In the third quarter, the company had an installed base of 10,763 systems, representing a 13% year-over-year increase. And a few weeks ago, Intuitive Surgical announced regulatory approval for three new indications.
NASDAQ: ISRG
Key Data Points
Second, Intuitive Surgical has a strong economic moat thanks to high switching costs. Between the price of a da Vinci system and the training required, it's far easier for hospitals to stay locked in than opt for an entirely new device.
Lastly, there is a long runway for growth in the RAS market, particularly when looking far into the future. New indications will always play a role, boosting procedure volumes over the long run.
Additionally, the RAS market is currently underpenetrated and is expected to grow consistently as the world's population ages over the next few decades. Intuitive Surgical also generates most of its revenue from instruments and accessories, which -- unlike the actual da Vinci systems -- are replaced regularly. So, it has a consistent stream of revenue from the sale of these products, which carry even higher margins. That should provide a constant boost to the company's top and bottom lines over the long run.
Buy and stay the course
For investors 30 years from retirement, for example, $30,000 can grow to $1 million over that time frame, assuming a compound annual growth rate of 12.4% -- above the market's historical average return. It's important to diversify, and there are many excellent stocks on the market. However, Intuitive Surgical can be one of the core holdings in a well-diversified portfolio designed to turn a modest sum into $1 million or more in a few decades. It's an excellent option for long-term investors.
