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Vertex Pharmaceuticals (VRTX) closed at $254.88 in the latest trading session, marking a -1.86% move from the prior day. This change was narrower than the S&P 500's daily loss of 2.91%. Elsewhere, the Dow lost 2.73%, while the tech-heavy Nasdaq lost 0.25%.
Heading into today, shares of the drugmaker had gained 7.83% over the past month, outpacing the Medical sector's gain of 2.04% and the S&P 500's gain of 0.84% in that time.
Wall Street will be looking for positivity from Vertex Pharmaceuticals as it approaches its next earnings report date. The company is expected to report EPS of $3.56, up 14.47% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.12 billion, up 18.38% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.13 per share and revenue of $8.6 billion. These totals would mark changes of +8.53% and +13.54%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Vertex Pharmaceuticals. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Vertex Pharmaceuticals is currently a Zacks Rank #3 (Hold).
Digging into valuation, Vertex Pharmaceuticals currently has a Forward P/E ratio of 18.38. For comparison, its industry has an average Forward P/E of 20.81, which means Vertex Pharmaceuticals is trading at a discount to the group.
Investors should also note that VRTX has a PEG ratio of 1.69 right now. 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 1.1 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 105, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.