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Intuitive Surgical, Inc. (ISRG) Outperforms Broader Market: What You Need to Know

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Intuitive Surgical, Inc. (ISRG - Free Report) ended the recent trading session at $315.43, demonstrating a +1.61% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.39% for the day. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.2%.

Coming into today, shares of the company had gained 11.87% in the past month. In that same time, the Medical sector gained 2.91%, while the S&P 500 gained 5.28%.

Investors will be eagerly watching for the performance of Intuitive Surgical, Inc. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.47, showcasing a 19.51% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.86 billion, up 12.51% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.58 per share and a revenue of $7.06 billion, representing changes of +19.23% and +13.43%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Intuitive Surgical, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Intuitive Surgical, Inc. boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Intuitive Surgical, Inc. is currently trading at a Forward P/E ratio of 55.66. This represents a premium compared to its industry's average Forward P/E of 23.25.

We can also see that ISRG currently has a PEG ratio of 4.17. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Instruments industry had an average PEG ratio of 2.46 as trading concluded yesterday.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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