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Intuitive Surgical (ISRG) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Intuitive Surgical (ISRG - Free Report) closed at $526.25, marking a -1.82% move from the previous day. This change lagged the S&P 500's daily gain of 0.46%. Elsewhere, the Dow gained 0.9%, while the tech-heavy Nasdaq added 0.59%.

Coming into today, shares of the robotic surgery system company had gained 6.01% in the past month. In that same time, the Medical sector gained 1.03%, while the S&P 500 gained 4.04%.

Wall Street will be looking for positivity from ISRG as it approaches its next earnings report date. This is expected to be July 18, 2019. On that day, ISRG is projected to report earnings of $2.85 per share, which would represent year-over-year growth of 3.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.03 billion, up 12.98% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.66 per share and revenue of $4.26 billion. These totals would mark changes of +6.1% and +14.33%, 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. 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. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering 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 45.99. This represents a premium compared to its industry's average Forward P/E of 34.8.

Meanwhile, ISRG's PEG ratio is currently 3.77. 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. The Medical - Instruments industry currently had an average PEG ratio of 2.75 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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