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Intuitive Surgical, Inc. (ISRG) Laps the Stock Market: Here's Why

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The latest trading session saw Intuitive Surgical, Inc. (ISRG - Free Report) ending at $328.42, denoting a +1.25% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.45%.

Investors will be eagerly watching for the performance of Intuitive Surgical, Inc. in its upcoming earnings disclosure. In that report, analysts expect Intuitive Surgical, Inc. to post earnings of $1.47 per share. This would mark year-over-year growth of 19.51%. In the meantime, our current consensus estimate forecasts the revenue to be $1.86 billion, indicating a 12.51% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.58 per share and revenue of $7.06 billion, indicating changes of +19.23% and +13.43%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Intuitive Surgical, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Intuitive Surgical, Inc. is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Intuitive Surgical, Inc. is currently trading at a Forward P/E ratio of 58.15. For comparison, its industry has an average Forward P/E of 24.28, which means Intuitive Surgical, Inc. is trading at a premium to the group.

We can also see that ISRG currently has a PEG ratio of 4.36. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - Instruments stocks are, on average, holding a PEG ratio of 2.69 based on yesterday's closing prices.

The Medical - Instruments industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 70, finds itself in the top 28% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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