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Here's Why Intuitive Surgical, Inc. (ISRG) Fell More Than Broader Market

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In the latest market close, Intuitive Surgical, Inc. (ISRG - Free Report) reached $330.98, with a -1.89% movement compared to the previous day. This change lagged the S&P 500's 0.57% loss on the day. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, lost 1.64%.

Shares of the company witnessed a gain of 8.18% over the previous month, beating the performance of the Medical sector with its gain of 4.53% and the S&P 500's gain of 4%.

Market participants will be closely following the financial results of Intuitive Surgical, Inc. in its upcoming release. The company plans to announce its earnings on January 23, 2024. On that day, Intuitive Surgical, Inc. is projected to report earnings of $1.47 per share, which would represent year-over-year growth of 19.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.86 billion, up 12.51% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Intuitive Surgical, Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Intuitive Surgical, Inc. currently has a Zacks Rank of #4 (Sell).

Looking at valuation, Intuitive Surgical, Inc. is presently trading at a Forward P/E ratio of 52.97. For comparison, its industry has an average Forward P/E of 27.25, which means Intuitive Surgical, Inc. is trading at a premium to the group.

It is also worth noting that ISRG currently has a PEG ratio of 3.97. 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. As the market closed yesterday, the Medical - Instruments industry was having an average PEG ratio of 2.4.

The Medical - Instruments industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 87, placing it within the top 35% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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