Strength Seen in Vertex (VRTX): Can Its 4.8% Jump Turn into More Strength?
Vertex Pharmaceuticals (VRTX) shares soared 4.8% in the last trading session to close at $263.09. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.8% loss over the past four weeks.
Strong cystic fibrosis portfolio with no competition has been a key driver for Vertex's growth. The company is likely to have gained as investors got attracted to the company's strong fundamentals amid a declining market.
This drugmaker is expected to post quarterly earnings of $3.56 per share in its upcoming report, which represents a year-over-year change of +14.5%. Revenues are expected to be $2.12 billion, up 18.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Vertex, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on VRTX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Vertex is part of the Zacks Medical - Biomedical and Genetics industry. BioNTech SE Sponsored ADR (BNTX), another stock in the same industry, closed the last trading session 3.1% lower at $125.14. BNTX has returned -23.1% in the past month.
BioNTech SE Sponsored ADR's consensus EPS estimate for the upcoming report has changed -2.5% over the past month to $6.65. Compared to the company's year-ago EPS, this represents a change of -48.8%. BioNTech SE Sponsored ADR currently boasts a Zacks Rank of #3 (Hold).
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