Intuitive Surgical (ISRG) closed at $494.25 in the latest trading session, marking a -0.5% move from the prior day. This change lagged the S&P 500's 0.15% loss on the day. At the same time, the Dow added 0.21%, and the tech-heavy Nasdaq lost 0.81%.
Heading into today, shares of the robotic surgery system company had gained 3.72% over the past month, outpacing the Medical sector's gain of 2.7% and lagging the S&P 500's gain of 6.55% in that time.
Investors will be hoping for strength from ISRG as it approaches its nex t earnings release, which is expected to be April 16, 2019. The company is expected to report EPS of $2.81, up 15.16% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $971.94 million, up 14.68% from the year-ago period.
ISRG's full-year Zacks Consensus Estimates are calling for earnings of $12.33 per share and revenue of $4.28 billion. These results would represent year-over-year changes of +12.19% and +14.99%, respectively.
It is also important to note the recent changes to analyst estimates for ISRG. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.45% higher within the past month. ISRG is currently a Zacks Rank #2 (Buy).
Digging into valuation, ISRG currently has a Forward P/E ratio of 40.29. Its industry sports an average Forward P/E of 32.67, so we one might conclude that ISRG is trading at a premium comparatively.
It is also worth noting that ISRG currently has a PEG ratio of 3.07. 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 was holding an average PEG ratio of 2.49 at yesterday's closing price.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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