Vertex Pharmaceuticals (VRTX) Beats Stock Market Upswing: What Investors Need to Know
The latest trading session saw Vertex Pharmaceuticals (VRTX) ending at $409.27, denoting a +0.3% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.04% for the day. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.03%.
The the stock of drugmaker has risen by 16.25% in the past month, leading the Medical sector's gain of 5.57% and the S&P 500's gain of 5.28%.
The investment community will be closely monitoring the performance of Vertex Pharmaceuticals in its forthcoming earnings report. It is anticipated that the company will report an EPS of $4.08, marking an 8.51% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.5 billion, indicating an 8.52% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.08 per share and revenue of $9.85 billion, indicating changes of +1.34% and +10.3%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Vertex Pharmaceuticals. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% increase. Vertex Pharmaceuticals presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Vertex Pharmaceuticals is at present trading with a Forward P/E ratio of 27.06. This represents a premium compared to its industry's average Forward P/E of 17.99.
Meanwhile, VRTX's PEG ratio is currently 2.44. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Medical - Biomedical and Genetics industry held an average PEG ratio of 2.
The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 74, placing it within the top 30% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report
