The latest trading session ended with Intuitive Surgical, Inc. (ISRG) trading at $486.55, representing a change of -0.79% from the previous trading day’s close. This performance lagged the S&P 500’s daily gain of 1.15%. The Dow gained 1.14%, while the tech-heavy Nasdaq gained 1.47%.

The company’s shares gained 12.29% month-over-month, outperforming the Medical sector’s gain of 4.39% and the S&P 500’s gain of 0.27%.

Analysts and investors will be keeping a close eye on Intuitive Surgical, Inc.’s performance on its upcoming earnings release. The company’s upcoming earnings per share are estimated at $1.65, representing an increase of 13.01% from the year-ago quarter. Meanwhile, our current consensus estimate is projecting revenue of $2.02 billion, representing growth of 15.57% from the corresponding quarter last year.

For the full fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.67 per share and revenue of $8.1 billion, representing year-over-year changes of +16.81% and +13.69%, respectively.

It is also important to note the recent changes in analyst estimates for Intuitive Surgical, Inc. These changes help to highlight the constant change in near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Empirical research shows that these estimate revisions are directly related to upcoming stock price performance. Investors can take advantage of this by using the Zacks Rank. This model takes these estimate changes into account 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, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus Estimate for earnings per share remained stable. Intuitive Surgical, Inc. currently carries a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Intuitive Surgical, Inc. is currently trading at a P/E ratio of 73.58. This valuation represents a premium to the industry’s average P/E ratio of 27.09.

It is also important to note that ISRG currently has a PEG ratio of 4.23. The PEG ratio is similar to the widely used P/E ratio, but this metric also takes into account the company’s expected earnings growth rate. ISRG’s industry had an average PEG ratio of 2.24 as of yesterday’s close.

The story continues

The Medical – Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 84, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank evaluates the strength of our individual industry groups by calculating the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to track all of these and other stock-moving metrics in the coming trading sessions.

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Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report

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