Investors are showing strong interest in Intuitive Surgical (ISRG), a leading medical device company, as recent earnings estimates point to a promising future. The stock has already seen significant gains in the short term, and this positive momentum is expected to continue as analysts maintain their optimism about the company’s earnings potential. This upward trend in earnings estimates is a key driver of the stock’s performance. Empirical research has consistently demonstrated a strong correlation between revisions in earnings estimates and subsequent stock price movements. This principle lies at the heart of the Zacks Rank, a widely respected rating system that analyzes earnings estimate trends to provide investors with valuable insights. The Zacks Rank, ranging from 1 (Strong Buy) to 5 (Strong Sell), has a proven track record of success, with Zacks #1 Ranked stocks achieving an average annual return of over 25% since 2008.
For Intuitive Surgical, the consensus among analysts has shifted decisively towards optimism, leading to a substantial upward revision in earnings estimates. This positive sentiment is reflected in both the current quarter and full-year projections. For the current quarter, the company is expected to earn $1.65 per share, representing a year-over-year increase of 13.01%. Over the past 30 days, the Zacks Consensus Estimate for Intuitive Surgical has climbed 6.14%, driven by 10 upward revisions and no downward adjustments. Looking ahead to the full year, the company is projected to earn $6.67 per share, marking a year-over-year growth of 16.81%. The revisions trend for the current year is equally encouraging, with 11 estimates moving higher and no negative revisions in the last month. Consequently, the consensus estimate has risen 8.9% during this period.
These positive revisions have earned Intuitive Surgical a Zacks Rank #1 (Strong Buy), signifying its strong earnings growth prospects. The Zacks Rank, a tried and tested rating tool, empowers investors to leverage the power of earnings estimate revisions and make informed investment decisions. Extensive research has consistently shown that stocks with a Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the broader market, represented by the S&P 500.
Intuitive Surgical’s recent performance, with a 6.5% increase in share price over the past four weeks, reflects investor confidence in the company’s promising earnings outlook. If you’re seeking to capitalize on the company’s growth potential, considering adding Intuitive Surgical to your portfolio could be a strategic move.
