Intuitive Surgical (ISRG) Outpaces Stock Market Gains: What You Should Know
Intuitive Surgical (ISRG) closed at $476.13 in the latest trading session, marking a +0.49% move from the prior day. This change outpaced the S&P 500's 0.16% gain on the day. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.29%.
Heading into today, shares of the robotic surgery system company had lost 8.5% over the past month, lagging the Medical sector's gain of 1.66% and the S&P 500's loss of 3.66% in that time.
Wall Street will be looking for positivity from ISRG as it approaches its next earnings report date. On that day, ISRG is projected to report earnings of $2.84 per share, which would represent year-over-year growth of 2.9%. Our most recent consensus estimate is calling for quarterly revenue of $1.03 billion, up 12.81% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.63 per share and revenue of $4.26 billion. These totals would mark changes of +5.82% and +14.29%, 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. ISRG is currently a Zacks Rank #3 (Hold).
Digging into valuation, ISRG currently has a Forward P/E ratio of 40.73. This represents a premium compared to its industry's average Forward P/E of 29.23.
Also, we should mention that ISRG has a PEG ratio of 3.34. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Instruments was holding an average PEG ratio of 2.65 at yesterday's closing price.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% 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.
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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.