In the latest trading session, Intuitive Surgical (ISRG) closed at $540.02, marking a -1.04% move from the previous day. This change lagged the S&P 500's daily loss of 0.25%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 0.53%.
Heading into today, shares of the robotic surgery system company had gained 6.53% over the past month, outpacing the Medical sector's loss of 1.06% and the S&P 500's loss of 2.35% in that time.
ISRG will be looking to display strength as it nears its next earnings release, which is expected to be January 24, 2019. In that report, analysts expect ISRG to post earnings of $2.96 per share. This would mark year-over-year growth of 16.54%. Our most recent consensus estimate is calling for quarterly revenue of $1.02 billion, up 14.49% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.97 per share and revenue of $3.70 billion. These totals would mark changes of +22.02% and +18.23%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ISRG. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 1.69% higher. ISRG is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that ISRG has a Forward P/E ratio of 49.75 right now. Its industry sports an average Forward P/E of 33.62, so we one might conclude that ISRG is trading at a premium comparatively.
It is also worth noting that ISRG currently has a PEG ratio of 3.18. 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 industry currently had an average PEG ratio of 2.66 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 92, putting it in the top 36% 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.
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Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
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