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Intuitive Surgical, Inc. (ISRG) Gains But Lags Market: What You Should Know

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Intuitive Surgical, Inc. (ISRG - Free Report) closed the most recent trading day at $228.90, moving +0.69% from the previous trading session. This move lagged the S&P 500's daily gain of 0.76%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq lost 0.98%.

Heading into today, shares of the company had lost 9.5% over the past month, lagging the Medical sector's loss of 4.24% and the S&P 500's loss of 3.91% in that time.

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 year-over-year growth of 3.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.58 billion, up 6.23% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.27 per share and revenue of $6.88 billion, which would represent changes of +12.61% and +10.6%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Intuitive Surgical, Inc.Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.32% lower within the past month. Intuitive Surgical, Inc. is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note Intuitive Surgical, Inc.'s current valuation metrics, including its Forward P/E ratio of 43.17. Its industry sports an average Forward P/E of 25.99, so we one might conclude that Intuitive Surgical, Inc. is trading at a premium comparatively.

Also, we should mention that ISRG has a PEG ratio of 3.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ISRG's industry had an average PEG ratio of 2.21 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% of all 250+ industries.

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

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