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Vertex Pharmaceuticals (VRTX) Gains As Market Dips: What You Should Know

·3 min read

Vertex Pharmaceuticals (VRTX) closed the most recent trading day at $287.67, moving +0.99% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.13%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq gained 0.16%.

Heading into today, shares of the drugmaker had lost 4.8% over the past month, outpacing the Medical sector's loss of 5.51% and the S&P 500's loss of 7.59% in that time.

Investors will be hoping for strength from Vertex Pharmaceuticals as it approaches its next earnings release. On that day, Vertex Pharmaceuticals is projected to report earnings of $3.65 per share, which would represent year-over-year growth of 2.53%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.22 billion, up 12.1% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $14.14 per share and revenue of $8.77 billion, which would represent changes of +8.6% and +15.8%, respectively, from the prior year.

Any recent changes to analyst estimates for Vertex Pharmaceuticals should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Vertex Pharmaceuticals is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Vertex Pharmaceuticals currently has a Forward P/E ratio of 20.15. This represents a discount compared to its industry's average Forward P/E of 20.28.

Meanwhile, VRTX's PEG ratio is currently 1.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.36 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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