Vertex Pharmaceuticals (VRTX) closed at $219.98 in the latest trading session, marking a -0.32% move from the prior day. This move lagged the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.34%, while the tech-heavy Nasdaq added 0.23%.
Coming into today, shares of the drugmaker had gained 2.41% in the past month. In that same time, the Medical sector gained 6.06%, while the S&P 500 gained 3.81%.
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 $1.20, down 7.69% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $996.44 million, up 14.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.82 per share and revenue of $3.74 billion, which would represent changes of +18.14% and +22.84%, respectively, from the prior year.
Investors might also notice 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection 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 45.75 right now. This represents a premium compared to its industry's average Forward P/E of 25.9.
Investors should also note that VRTX has a PEG ratio of 1.56 right now. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.78 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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