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Intuitive Surgical, Inc. (ISRG) Registers a Bigger Fall Than the Market: Important Facts to Note

In the latest trading session, Intuitive Surgical, Inc. (ISRG) closed at $309.52, marking a -0.74% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.06% for the day. On the other hand, the Dow registered a loss of 0.22%, and the technology-centric Nasdaq increased by 0.31%.

Shares of the company have appreciated by 12.47% over the course of the past month, outperforming the Medical sector's gain of 3.9% and the S&P 500's gain of 5.1%.

Market participants will be closely following the financial results of Intuitive Surgical, Inc. in its upcoming release. The company's earnings per share (EPS) are projected to be $1.47, reflecting a 19.51% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.86 billion, indicating a 12.51% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.58 per share and revenue of $7.06 billion. These totals would mark changes of +19.23% and +13.43%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Intuitive Surgical, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Intuitive Surgical, Inc. boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Intuitive Surgical, Inc. is presently trading at a Forward P/E ratio of 55.93. This denotes a premium relative to the industry's average Forward P/E of 23.02.

We can also see that ISRG currently has a PEG ratio of 4.19. 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 industry had an average PEG ratio of 2.45 as trading concluded yesterday.

The Medical - Instruments industry is part of the Medical sector. With its current Zacks Industry Rank of 75, this industry ranks in the top 30% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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