Markets

Intuitive Surgical (ISRG) Gains As Market Dips: What You Should Know

Intuitive Surgical (ISRG) closed at $485.24 in the latest trading session, marking a +0.53% move from the prior day. This move outpaced the S&P 500's daily loss of 1.82%. Meanwhile, the Dow lost 2.21%, and the Nasdaq, a tech-heavy index, lost 1.7%.

Prior to today's trading, shares of the robotic surgery system company had lost 5.62% over the past month. This has lagged the Medical sector's loss of 1.44% and the S&P 500's loss of 2.57% in that time.

ISRG will be looking to display strength as it nears its next earnings release, which 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 +18.23%, respectively, from last year.

Any recent changes to analyst estimates for ISRG should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ISRG is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, ISRG is holding a Forward P/E ratio of 44. This valuation marks a premium compared to its industry's average Forward P/E of 32.91.

Meanwhile, ISRG's PEG ratio is currently 2.81. 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. ISRG's industry had an average PEG ratio of 2.46 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 30% 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.

To follow ISRG in the coming trading sessions, be sure to utilize Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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.

In This Story

ISRG

Other Topics

Investing Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More