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Intuitive Surgical, Inc. (ISRG) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Intuitive Surgical, Inc. (ISRG - Free Report) closed the most recent trading day at $481.73, moving -0.35% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.16%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq lost 0.3%.

Prior to today's trading, shares of the company had gained 7.99% over the past month. This has outpaced the Medical sector's gain of 4.7% and the S&P 500's gain of 3.64% in that time.

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 $1.65, reflecting a 13.01% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.02 billion, indicating a 15.57% upward movement from the same quarter last year.

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

Any recent changes to analyst estimates for Intuitive Surgical, Inc. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Intuitive Surgical, Inc. currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Intuitive Surgical, Inc. is currently trading at a Forward P/E ratio of 72.53. For comparison, its industry has an average Forward P/E of 27.25, which means Intuitive Surgical, Inc. is trading at a premium to the group.

We can additionally observe that ISRG currently boasts a PEG ratio of 4.17. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Instruments was holding an average PEG ratio of 2.29 at yesterday's closing price.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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