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

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Intuitive Surgical, Inc. (ISRG - Free Report) closed at $244.47 in the latest trading session, marking a +1.52% move from the prior day. This change outpaced the S&P 500's 0.3% gain on the day. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.34%.

Coming into today, shares of the company had gained 3.11% in the past month. In that same time, the Medical sector lost 2.43%, while the S&P 500 lost 1.21%.

Investors will be hoping for strength from Intuitive Surgical, Inc. as it approaches its next earnings release, which is expected to be April 18, 2023. The company is expected to report EPS of $1.17, up 3.54% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.58 billion, up 6.23% from the prior-year quarter.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Intuitive Surgical, Inc. is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Intuitive Surgical, Inc.'s current valuation metrics, including its Forward P/E ratio of 45.73. Its industry sports an average Forward P/E of 24.6, so we one might conclude that Intuitive Surgical, Inc. is trading at a premium comparatively.

We can also see that ISRG currently has a PEG ratio of 3.83. 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. ISRG's industry had an average PEG ratio of 2.05 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% 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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