In the latest trading session, Intuitive Surgical (ISRG - Free Report) closed at $477.22, marking a +1.12% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.21%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.27%.
Heading into today, shares of the robotic surgery system company had lost 5.05% over the past month, lagging the Medical sector's loss of 1.96% and outpacing the S&P 500's loss of 5.26% in that time.
ISRG will be looking to display strength as it nears its next earnings release. On that day, ISRG is projected to report earnings of $2.84 per share, which would represent year-over-year growth of 2.9%. Our most recent consensus estimate is calling for quarterly revenue of $1.03 billion, up 12.81% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.64 per share and revenue of $4.26 billion, which would represent changes of +5.91% and +14.29%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for ISRG. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ISRG currently has a Zacks Rank of #3 (Hold).
Investors should also note ISRG's current valuation metrics, including its Forward P/E ratio of 40.53. Its industry sports an average Forward P/E of 30.26, so we one might conclude that ISRG is trading at a premium comparatively.
We can also see that ISRG currently has a PEG ratio of 3.32. 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 2.66 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.