Intuitive Surgical, Inc. (ISRG) Gains As Market Dips: What You Should Know

In the latest close session, Intuitive Surgical, Inc. (ISRG) was up +1.51% at $372.60. The stock's performance was ahead of the S&P 500's daily loss of 0.25%. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq lost 0.52%.

The company's shares have seen an increase of 3.99% over the last month, not keeping up with the Medical sector's gain of 4.64% and the S&P 500's gain of 4.34%.

Analysts and investors alike will be keeping a close eye on the performance of Intuitive Surgical, Inc. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.61, reflecting a 8.75% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.88 billion, up 14.98% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $10.74 per share and revenue of $11.81 billion, which would represent changes of +20.27% and +17.38%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Intuitive Surgical, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Intuitive Surgical, Inc. presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Intuitive Surgical, Inc. is at present trading with a Forward P/E ratio of 34.19. Its industry sports an average Forward P/E of 23.49, so one might conclude that Intuitive Surgical, Inc. is trading at a premium comparatively.

One should further note that ISRG currently holds a PEG ratio of 2.19. 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. The Medical - Instruments industry currently had an average PEG ratio of 2.36 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 103, positioning it in the top 42% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research