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In the latest trading session, Vertex Pharmaceuticals (VRTX) closed at $209.16, marking a -0.37% move from the previous day. This change lagged the S&P 500's daily loss of 0.08%.
Heading into today, shares of the drugmaker had lost 2.36% over the past month, lagging the Medical sector's gain of 0.58% and the S&P 500's gain of 1.68% in that time.
Wall Street will be looking for positivity from VRTX as it approaches its next earnings report date. The company is expected to report EPS of $2.73, up 4.6% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.72 billion, up 12.54% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.22 per share and revenue of $6.92 billion. These totals would mark changes of +8.72% and +11.44%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for VRTX. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. VRTX is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note VRTX's current valuation metrics, including its Forward P/E ratio of 18.71. This represents a discount compared to its industry's average Forward P/E of 24.2.
Also, we should mention that VRTX has a PEG ratio of 1.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VRTX's industry had an average PEG ratio of 1.35 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow VRTX in the coming trading sessions, be sure to utilize Zacks.com.
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Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report
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