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Vertex Pharmaceuticals (VRTX) Stock Moves -0.25%: What You Should Know

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Zacks Equity Research
·3 min read
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Vertex Pharmaceuticals (VRTX) closed the most recent trading day at $225.55, moving -0.25% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.72%. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq lost 0.87%.

Coming into today, shares of the drugmaker had lost 4.56% in the past month. In that same time, the Medical sector gained 3.28%, while the S&P 500 gained 4.69%.

VRTX will be looking to display strength as it nears its next earnings release. In that report, analysts expect VRTX to post earnings of $2.61 per share. This would mark year-over-year growth of 53.53%. Our most recent consensus estimate is calling for quarterly revenue of $1.57 billion, up 11.05% from the year-ago period.

Any recent changes to analyst estimates for VRTX should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. VRTX currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that VRTX has a Forward P/E ratio of 20.37 right now. This valuation marks a discount compared to its industry's average Forward P/E of 27.43.

We can also see that VRTX currently has a PEG ratio of 1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.25 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 209, which puts it in the bottom 19% 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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