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Intuitive Surgical, Inc. (ISRG) Outpaces Stock Market Gains: What You Should Know

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Intuitive Surgical, Inc. (ISRG - Free Report) closed at $220.47 in the latest trading session, marking a +1.69% move from the prior day. This change outpaced the S&P 500's 0.29% gain on the day. Elsewhere, the Dow gained 0.18%, while the tech-heavy Nasdaq added 0.07%.

Coming into today, shares of the company had gained 0.01% in the past month. In that same time, the Medical sector lost 1.32%, while the S&P 500 gained 4.36%.

Investors will be hoping for strength from Intuitive Surgical, Inc. as it approaches its next earnings release. On that day, Intuitive Surgical, Inc. is projected to report earnings of $1.10 per share, which would represent a year-over-year decline of 7.56%. Our most recent consensus estimate is calling for quarterly revenue of $1.53 billion, up 8.99% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.55 per share and revenue of $6.2 billion, which would represent changes of -8.27% and +8.57%, respectively, from the prior year.

Any recent changes to analyst estimates for Intuitive Surgical, Inc. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.99% lower. Intuitive Surgical, Inc. is currently a Zacks Rank #4 (Sell).

Investors should also note Intuitive Surgical, Inc.'s current valuation metrics, including its Forward P/E ratio of 47.6. This valuation marks a premium compared to its industry's average Forward P/E of 28.89.

Meanwhile, ISRG's PEG ratio is currently 4.99. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Instruments industry currently had an average PEG ratio of 2.14 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 144, putting it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ISRG in the coming trading sessions, be sure to utilize Zacks.com.


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