In the latest trading session, Intuitive Surgical, Inc. (ISRG) closed at $534.65, marking a -1.8% move from the previous day. This move lagged the S&P 500's daily loss of 0.79%. Meanwhile, the Dow lost 0.94%, and the Nasdaq, a tech-heavy index, lost 0.92%.
Heading into today, shares of the company had lost 2.26% over the past month, lagging the Medical sector's gain of 1.49% and the S&P 500's gain of 5.22%.
Investors will be eagerly watching for the performance of Intuitive Surgical, Inc. in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.92, indicating a 7.87% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.35 billion, up 16.81% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.84 per share and revenue of $9.65 billion, indicating changes of +6.81% and +15.56%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Intuitive Surgical, Inc. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 has moved 0.02% higher within the past month. As of now, Intuitive Surgical, Inc. holds a Zacks Rank of #2 (Buy).
Looking at valuation, Intuitive Surgical, Inc. is presently trading at a Forward P/E ratio of 69.44. This indicates a premium in contrast to its industry's Forward P/E of 25.22.
Investors should also note that ISRG has a PEG ratio of 4.59 right now. 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 2.26 at yesterday's closing price.
The Medical - Instruments industry is part of the Medical sector. With its current Zacks Industry Rank of 179, this industry ranks in the bottom 28% 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.
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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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