Intuitive Surgical (ISRG - Free Report) closed the most recent trading day at $520.97, moving -0.18% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 0.25%.
Heading into today, shares of the robotic surgery system company had gained 0.14% over the past month, lagging the Medical sector's gain of 6.05% and the S&P 500's gain of 3.57% in that time.
ISRG will be looking to display strength as it nears its next earnings release, which is expected to be January 24, 2019. On that day, ISRG is projected to report earnings of $2.96 per share, which would represent year-over-year growth of 16.54%. Our most recent consensus estimate is calling for quarterly revenue of $1.02 billion, up 14.49% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.97 per share and revenue of $3.70 billion. These totals would mark changes of +22.02% and +18.23%, respectively, from last year.
Any recent changes to analyst estimates for ISRG should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Within the past 30 days, our consensus EPS projection remained stagnant. ISRG currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, ISRG is holding a Forward P/E ratio of 47.58. This valuation marks a premium compared to its industry's average Forward P/E of 33.94.
Investors should also note that ISRG has a PEG ratio of 3.28 right now. 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. Medical - Instruments stocks are, on average, holding a PEG ratio of 2.42 based on yesterday's closing prices.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 71, putting it in the top 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.