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Intuitive Surgical, Inc. (ISRG) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Intuitive Surgical, Inc. (ISRG) closed at $205.72, marking a -1.48% move from the previous day. This change lagged the S&P 500's daily loss of 1.15%. At the same time, the Dow lost 0.52%, and the tech-heavy Nasdaq lost 0.34%.

Heading into today, shares of the company had gained 1.72% over the past month, outpacing the Medical sector's gain of 0.72% and the S&P 500's loss of 5.08% in that time.

Intuitive Surgical, Inc. will be looking to display strength as it nears its next earnings release, which is expected to be July 21, 2022. The company is expected to report EPS of $1.16, down 11.45% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.56 billion, up 6.83% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.81 per share and revenue of $6.37 billion. These totals would mark changes of -3.02% and +11.52%, respectively, from last 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.32% higher. Intuitive Surgical, Inc. is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Intuitive Surgical, Inc.'s current valuation metrics, including its Forward P/E ratio of 43.45. Its industry sports an average Forward P/E of 29.54, so we one might conclude that Intuitive Surgical, Inc. is trading at a premium comparatively.

Meanwhile, ISRG's PEG ratio is currently 4.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Instruments was holding an average PEG ratio of 1.98 at yesterday's closing price.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 138, putting it in the bottom 46% 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.

To follow ISRG in the coming trading sessions, be sure to utilize Zacks.com.


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