Intuitive Surgical, Inc. (ISRG) Stock Drops Despite Market Gains: Important Facts to Note

Company Performance - Intuitive Surgical, Inc. (ISRG) closed at $486.55, reflecting a -0.79% change from the previous trading day's closing, underperforming the S&P 500's daily gain of 1.15% [1] - The company's shares gained 12.29% over the previous month, outperforming the Medical sector's gain of 4.39% and the S&P 500's gain of 0.27% [1] - Upcoming earnings per share (EPS) is projected at$ 1.65, indicating a 13.01% increase year-over-year, with revenue forecasted at $2.02 billion, representing a 15.57% growth compared to the same quarter last year [1] Fiscal Year Estimates - Zacks Consensus Estimates predict earnings of$ 6.67 per share and revenue of $8.1 billion for the fiscal year, reflecting changes of +16.81% and +13.69% respectively from the previous year [2] - Recent analyst estimate revisions indicate a positive outlook for the company's business trends, which can correlate with stock price performance [2] Zacks Rank and Valuation - Intuitive Surgical, Inc. currently holds a Zacks Rank of 1 (Strong Buy), with a historical average annual return of +25% for 1 stocks since 1988 [3] - The company has a Forward P/E ratio of 73.58, significantly higher than the industry average of 27.09 [3] - The PEG ratio for ISRG is 4.23, compared to the industry average PEG ratio of 2.24, indicating a premium valuation [3] Industry Overview - The Medical - Instruments industry is part of the Medical sector, holding a Zacks Industry Rank of 84, placing it in the top 34% of over 250 industries [4] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]