We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
2 Healthcare Stocks to Buy After Crushing Q3 Earnings Expectations: ELV & ISRG
Key Takeaways
ISRG's Q3 earnings jumped 25%, fueled by strong robotic surgery demand.
ELV crushed Q3 earnings expectations by 50% and raised its FY26 outlook.
Both healthcare stocks boast impressive earnings beat streaks and favorable growth prospects.
Healthcare stocks Intuitive Surgical (ISRG - Free Report) ) and Elevance Health (ELV - Free Report) ) are worth considering after both companies delivered better-than-expected third-quarter results this week, highlighting encouraging growth across the medical instruments and services industries.
With strong earnings momentum and favorable outlooks, both stocks present attractive investment opportunities following their strong Q3 reports.
Intuitive Surgical – ISRG: Robotic Surgery Growth Accelerates
Intuitive Surgical, a global leader in robotic-assisted surgery, reported adjusted Q3 earnings of $3.00 per share, surpassing the Zacks Consensus Estimate of $2.61 by nearly 15% and climbing 25% from EPS of $2.40 in the prior-year quarter.
Revenue jumped 22% to $3.05 billion, beating expectations of $2.88 billion by almost 6%. Growth was supported by continued adoption of Intuitive's da Vinci surgical systems, with worldwide da Vinci procedures increasing 14%. Notably, the company placed 546 da Vinci systems during the quarter, up 28% from 427 a year ago.
Despite strong results, ISRG shares have faced selling pressure amid concerns about slowing procedure growth, increased competition, and a $450 million antitrust settlement. However, expanding robotic surgery adoption and Intuitive's growing installed base continue to support its long-term outlook.
Encouragingly, management maintained its FY26 outlook for worldwide da Vinci procedure growth of 14%-15%, while projecting adjusted gross margins of 68.7%-69.3%, reinforcing expectations for continued demand and solid profitability.
Furthermore, Intuitive Surgical has now surpassed earnings expectations for 15 consecutive quarters, posting an impressive average EPS surprise of 15.12% over its last four reports.
Image Source: Zacks Investment Research
Elevance Health – ELV: Better Medical Cost Management Boosts Margins
Health insurance giant Elevance Health delivered an impressive Q3 earnings beat as well, posting adjusted EPS of $6.99. This exceeded the Zacks Consensus Estimate of $4.66 by 50% and increased16% from $6.03 per share a year ago.
Operating revenue climbed modestly to $50.4 billion, topping expectations by nearly 3%, supported by stronger premium yields and growth in its Carelon healthcare services business. Optimistically, Elevance's benefit expense ratio improved 70 basis points to 90.6%, reflecting better medical cost management.
Adding to investor optimism, Elevance raised its FY26 adjusted EPS guidance from $27.00 to at least $29.00 per share. Plus, management expects adjusted earnings growth of at least 12% in FY27, excluding certain one-time benefits from its FY26 results, signaling confidence in improving profitability.
ELV shares are up 25% year-to-date and offer a solid annual dividend yield of 1.56%. Furthermore, Elevance has exceeded earnings expectations for five consecutive quarters, posting a very impressive average EPS surprise of 23.94% over its last four reports.
Image Source: Zacks Investment Research
Bottom Line
Intuitive Surgical and Elevance Health offer two distinct ways to capitalize on growth in the medical sector, with ISRG benefiting from expanding robotic surgery adoption and ELV demonstrating improving profitability and cost management.
Most importantly, both stocks currently sport a Zacks Rank #2 (Buy), making them compelling healthcare stocks to consider following their better-than-expected Q3 results.
View the Zacks #1 Rank List
Image: Bigstock
2 Healthcare Stocks to Buy After Crushing Q3 Earnings Expectations: ELV & ISRG
Key Takeaways
Healthcare stocks Intuitive Surgical (ISRG - Free Report) ) and Elevance Health (ELV - Free Report) ) are worth considering after both companies delivered better-than-expected third-quarter results this week, highlighting encouraging growth across the medical instruments and services industries.
With strong earnings momentum and favorable outlooks, both stocks present attractive investment opportunities following their strong Q3 reports.
Intuitive Surgical – ISRG: Robotic Surgery Growth Accelerates
Intuitive Surgical, a global leader in robotic-assisted surgery, reported adjusted Q3 earnings of $3.00 per share, surpassing the Zacks Consensus Estimate of $2.61 by nearly 15% and climbing 25% from EPS of $2.40 in the prior-year quarter.
Revenue jumped 22% to $3.05 billion, beating expectations of $2.88 billion by almost 6%. Growth was supported by continued adoption of Intuitive's da Vinci surgical systems, with worldwide da Vinci procedures increasing 14%. Notably, the company placed 546 da Vinci systems during the quarter, up 28% from 427 a year ago.
Despite strong results, ISRG shares have faced selling pressure amid concerns about slowing procedure growth, increased competition, and a $450 million antitrust settlement. However, expanding robotic surgery adoption and Intuitive's growing installed base continue to support its long-term outlook.
Encouragingly, management maintained its FY26 outlook for worldwide da Vinci procedure growth of 14%-15%, while projecting adjusted gross margins of 68.7%-69.3%, reinforcing expectations for continued demand and solid profitability.
Furthermore, Intuitive Surgical has now surpassed earnings expectations for 15 consecutive quarters, posting an impressive average EPS surprise of 15.12% over its last four reports.
Image Source: Zacks Investment Research
Elevance Health – ELV: Better Medical Cost Management Boosts Margins
Health insurance giant Elevance Health delivered an impressive Q3 earnings beat as well, posting adjusted EPS of $6.99. This exceeded the Zacks Consensus Estimate of $4.66 by 50% and increased16% from $6.03 per share a year ago.
Operating revenue climbed modestly to $50.4 billion, topping expectations by nearly 3%, supported by stronger premium yields and growth in its Carelon healthcare services business. Optimistically, Elevance's benefit expense ratio improved 70 basis points to 90.6%, reflecting better medical cost management.
Adding to investor optimism, Elevance raised its FY26 adjusted EPS guidance from $27.00 to at least $29.00 per share. Plus, management expects adjusted earnings growth of at least 12% in FY27, excluding certain one-time benefits from its FY26 results, signaling confidence in improving profitability.
ELV shares are up 25% year-to-date and offer a solid annual dividend yield of 1.56%. Furthermore, Elevance has exceeded earnings expectations for five consecutive quarters, posting a very impressive average EPS surprise of 23.94% over its last four reports.
Image Source: Zacks Investment Research
Bottom Line
Intuitive Surgical and Elevance Health offer two distinct ways to capitalize on growth in the medical sector, with ISRG benefiting from expanding robotic surgery adoption and ELV demonstrating improving profitability and cost management.
Most importantly, both stocks currently sport a Zacks Rank #2 (Buy), making them compelling healthcare stocks to consider following their better-than-expected Q3 results.