Intuitive Surgical, Inc. (ISRG) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Intuitive Surgical, Inc. (ISRG) closed at $222.58, marking a +1.92% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.95%. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.04%.

Coming into today, shares of the company had lost 10.69% in the past month. In that same time, the Medical sector lost 3.2%, while the S&P 500 lost 7.49%.

Intuitive Surgical, Inc. will be looking to display strength as it nears its next earnings release. On that day, Intuitive Surgical, Inc. is projected to report earnings of $1.17 per share, which would represent a year-over-year decline of 10.69%. Our most recent consensus estimate is calling for quarterly revenue of $1.56 billion, up 6.67% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.82 per share and revenue of $6.36 billion. These totals would mark changes of -2.82% and +11.43%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Intuitive Surgical, Inc.Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Intuitive Surgical, Inc. is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Intuitive Surgical, Inc. is currently trading at a Forward P/E ratio of 45.29. This valuation marks a premium compared to its industry's average Forward P/E of 27.88.

It is also worth noting that ISRG currently has a PEG ratio of 4.28. 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 2.01 at yesterday's closing price.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 33% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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