In the latest trading session, Intuitive Surgical, Inc. (ISRG) closed at $515.09, marking a +1.12% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.96% for the day. Elsewhere, the Dow saw an upswing of 0.89%, while the tech-heavy Nasdaq appreciated by 0.94%.
Heading into today, shares of the company had lost 5.59% over the past month, lagging the Medical sector's loss of 0.85% and the S&P 500's gain of 0.5%.
Market participants will be closely following the financial results of Intuitive Surgical, Inc. in its upcoming release. In that report, analysts expect Intuitive Surgical, Inc. to post earnings of $1.92 per share. This would mark year-over-year growth of 7.87%. Our most recent consensus estimate is calling for quarterly revenue of $2.35 billion, up 16.81% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.84 per share and revenue of $9.65 billion, which would represent changes of +6.81% and +15.56%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Intuitive Surgical, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. Intuitive Surgical, Inc. currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Intuitive Surgical, Inc. is presently trading at a Forward P/E ratio of 64.96. This valuation marks a premium compared to its industry average Forward P/E of 26.39.
One should further note that ISRG currently holds a PEG ratio of 4.3. 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 2.24.
The Medical - Instruments industry is part of the Medical sector. With its current Zacks Industry Rank of 159, this industry ranks in the bottom 36% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Intuitive Surgical, Inc. (ISRG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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