During the last four quarters, this company has seen double-digit year-over-year revenue growth. During that timeframe, the company has seen its revenue trend higher by an average of 22.4%. The largest growth came in the most recent quarter when revenue hit 29.7% from last year's quarter. Intuitive Surgical has registered increasing profits for three straight quarters. The most recent quarter saw net income jump by 41.3% from the year-earlier period.
The current short interest as a percentage of the float for Intuitive Surgical sits at 2.7%. That means that out of the 38.49 million shares in the tradable float, 1.04 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 7.2%, or by about 69,000 shares. This isn't a huge short interest by any means, but a decent short-squeeze could develop if the bears are caught pressing to hard into the quarter.
From a technical standpoint, ISRG is currently above both its 50- and 200-day moving averages, which is bullish. This stock has been uptrending very strong since it bottomed in August at $320 a share. During that uptrend, the stock has been consistently making higher highs and higher lows, which is bullish price action. Now the stock sets up to trigger a big breakout after earnings. If you're bullish on ISRG, I would wait until after they report their results and buy the stock once it breaks out above $474.50 with on high volume. Look for volume that's tracking in close to or above its three-month average action of 342,806 shares. If we get that move, I think this stock could spike $20 to $40 points post-earnings in a heartbeat.
I would avoid any long trades or short ISRG after earnings if it drops below $462.50 a share on heavy volume. I would then add to any short positions if the stock trades below $452.50 with volume. Target a drop back towards some support at $446.10 or the 50-day moving average of $441.98 a share if the bears hammer this stock lower post-earnings.
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