Intuitive Surgical, Inc. (ISRG) closed the last trading day at $261.65, down -0.88% from the previous trading session. That change was narrower than the S&P 500’s 1.2% daily loss. At the same time, the Dow Jones lost 1.1% and the tech-heavy Nasdaq lost 2.86%.
Prior to today’s session, the company’s shares had gained 2% in the past month. This outpaced the medical sector’s gain of 0.3% and the S&P 500’s loss of 4.77% during this period.
Wall Street will be looking for positivity from Intuitive Surgical, Inc. as it nears its next earnings report date. On that day, Intuitive Surgical, Inc. is expected to report earnings of $1.27 per share, which would represent a 2.31% year-over-year decline. Our most recent consensus estimate calls for quarterly revenue of $1.68 billion, up 8.34% from the prior year period.
For the full year, our Zacks consensus estimates call for earnings of $4.72 per share and revenue of $6.25 billion, which would represent swings of -4.84% and +9, 41%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Intuitive Surgical, Inc. These recent revisions tend to reflect the evolving nature of near-term business trends. With this in mind, we can view positive estimate revisions as a sign of optimism about the company’s business outlook.
Based on our research, we believe that these estimate revisions are directly related to the team’s close stock movements. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes into account these estimation changes and provides a clear and actionable scoring model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of outperformance verified by external audits, with #1 stocks generating an average annual return of +25% since 1988 The Zacks Consensus EPS estimate rose 0.48% over the past month. Intuitive Surgical, Inc. currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Intuitive Surgical, Inc. is currently trading at a Forward P/E ratio of 55.96. For comparison, its industry has an average PER of 28.27, meaning Intuitive Surgical, Inc. trades at a premium to the group.
Additionally, it is worth mentioning that ISRG has a PEG ratio of 4.67. The PEG ratio is similar to the widely used P/E ratio, but this measure also takes into account the company’s expected earnings growth rate. The ISRG industry had an average PEG ratio of 2.13 at yesterday’s close.
The Medical – Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 93, which places it in the top 37% of the 250+ industries.
The Zacks Industry Rankings are ranked from best to worst in terms of the average Zacks Ranking of individual companies in each of these industries. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and more, at Zacks.com.
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Intuitive Surgical, Inc. (ISRG): Free Inventory Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.