One such stock that you may want to consider dropping is Intuitive Surgical, Inc. (ISRG), which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #5 (Strong Sell) further confirms weakness in ISRG.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 5 estimates moving down in the past 30 days, compared with no upward revision. This trend has caused the consensus estimate to trend lower, going from $14.86 a share a month ago to its current level of $11.77 per share.
Also, for the current quarter, Intuitive Surgical has seen 10 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to $2.83 a share from $3.76 over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 14.5% in the past month.
So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don’t have a long time horizon to wait.
If you are still interested in the Medical Instruments industry, you may instead consider some better-ranked stocks including Delcath Systems, Inc. (DCTH), RTI Surgical Inc. (RTIX) and Accuray Incorporated (ARAY). While Delcath Systems and RTI Surgical carry a Zacks Rank #1 (Strong Buy), Accuray holds a Zacks Rank #2 (Buy). With favorable Zacks Ranks, these stocks may be better selections at this time.
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