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Intuitive Surgical (ISRG) Dips More Than Broader Markets: What You Should Know

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Intuitive Surgical (ISRG) closed at $512.25 in the latest trading session, marking a -0.66% move from the prior day. This change lagged the S&P 500's daily loss of 0.02%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, lost 0.39%.

Coming into today, shares of the robotic surgery system company had gained 3.41% in the past month. In that same time, the Medical sector lost 0.19%, while the S&P 500 lost 2.56%.

Wall Street will be looking for positivity from ISRG as it approaches its next earnings report date. This is expected to be January 24, 2019. The company is expected to report EPS of $2.96, up 16.54% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.02 billion, up 14.49% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.97 per share and revenue of $3.70 billion. These totals would mark changes of +22.02% and +18.24%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for ISRG. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ISRG currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that ISRG has a Forward P/E ratio of 47.01 right now. For comparison, its industry has an average Forward P/E of 32.6, which means ISRG is trading at a premium to the group.

Also, we should mention that ISRG has a PEG ratio of 3.24. 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. The Medical - Instruments industry currently had an average PEG ratio of 2.49 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 29% 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.

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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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