Intuitive Surgical, Inc. (ISRG) Outpaces Market Returns: Some Facts to Consider

During the last market close, Intuitive Surgical, Inc. (ISRG) reached $404.85, with a movement of +1.62% from the previous day. That move outpaced the S&P 500’s 0.7% daily gain. At the same time, the Dow gained 0.01% and the tech-heavy Nasdaq gained 1.1%.

The company’s shares registered a gain of 6.77% over the previous month, beating the performance of the Medical sector with a gain of 3.27% and that of the S&P 500 with a gain of 4.03%.

The investment community will be paying close attention to Intuitive Surgical, Inc.’s earnings performance in its upcoming release. On that day, Intuitive Surgical, Inc. is expected to report earnings of $1.53 per share, which would represent year-over-year growth of 7.75%. Meanwhile, our most recent consensus estimate is calling for revenue of $1.97 billion, indicating an increase of 12.16% from the same quarter last year.

For the full year, Zacks Consensus Estimates are projecting earnings of $6.26 per share and revenue of $8.01 billion, which would represent changes of +9.63% and +12.46%, respectively, compared to the previous year.

Additionally, investors should keep an eye out for any recent revisions to analyst forecasts for Intuitive Surgical, Inc. These latest adjustments often reflect changing dynamics in near-term business models. As a result, optimistic changes in estimates indicate analysts’ favorable outlook for the company’s health and profitability.

Empirical research indicates that these estimate revisions have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that incorporates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), has an admirable, independently audited track record of outperformance, with #1 stocks contributing an average annual return of +25 % since 1988. Over the past 30 days, the Zacks Consensus EPS estimate remained unchanged. Intuitive Surgical, Inc. currently has a Zacks Rank of #3 (Hold).

Digging deeper into valuation, Intuitive Surgical, Inc. currently has a Forward P/E ratio of 63.66. For comparison, its industry has an average Forward P/E of 26.89, which means Intuitive Surgical, Inc. is trading at a premium to the group.

It’s also worth mentioning that ISRG has a PEG ratio of 3.94. The PEG ratio is similar to the widely used P/E ratio, but this metric also takes into account the company’s expected earnings growth rate. The Medical Instruments sector currently had an average PEG ratio of 2.45 as of yesterday’s close.

The Medical – Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 142, which puts it in the bottom 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our specific industry groups by calculating the average Zacks Rank of the individual stocks incorporated within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Be sure to leverage Zacks.com to stay up-to-date with all of these stock-changing metrics and more in upcoming trading sessions.

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