Vertex Pharmaceuticals (VRTX) Stock Sinks As Market Gains: What You Should Know
Vertex Pharmaceuticals (VRTX) closed the most recent trading day at $412.45, moving -0.49% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.12% for the day. Meanwhile, the Dow experienced a rise of 0.61%, and the technology-dominated Nasdaq saw an increase of 1.54%.
Shares of the drugmaker witnessed a loss of 0.97% over the previous month, trailing the performance of the Medical sector with its gain of 2.49% and the S&P 500's gain of 2.06%.
The investment community will be closely monitoring the performance of Vertex Pharmaceuticals in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $4.07, reflecting a 33.44% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.55 billion, up 7.34% from the year-ago period.
VRTX's full-year Zacks Consensus Estimates are calling for earnings of $16.79 per share and revenue of $10.69 billion. These results would represent year-over-year changes of +10.24% and +8.27%, respectively.
Investors might also notice recent changes to analyst estimates for Vertex Pharmaceuticals. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% lower. Right now, Vertex Pharmaceuticals possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Vertex Pharmaceuticals has a Forward P/E ratio of 24.68 right now. This valuation marks a premium compared to its industry's average Forward P/E of 23.47.
We can also see that VRTX currently has a PEG ratio of 2.01. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Medical - Biomedical and Genetics industry stood at 1.63 at the close of the market yesterday.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 32% of all 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.
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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Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report
