Vertex Pharmaceuticals (VRTX) closed the latest trading day at $492.69, indicating a -1.96% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily loss of 1.97%. At the same time, the Dow lost 1.69%, and the tech-heavy Nasdaq lost 2.7%.
The drugmaker's stock has climbed by 5.91% in the past month, exceeding the Medical sector's loss of 2.45% and the S&P 500's loss of 2.79%.
Investors will be eagerly watching for the performance of Vertex Pharmaceuticals in its upcoming earnings disclosure. The company is predicted to post an EPS of $4.19, indicating a 11.97% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.81 billion, indicating a 4.56% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $17.66 per share and a revenue of $11.85 billion, representing changes of +4104.76% and +7.57%, respectively, from the prior year.
Any recent changes to analyst estimates for Vertex Pharmaceuticals should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% decrease. Vertex Pharmaceuticals presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Vertex Pharmaceuticals is currently trading at a Forward P/E ratio of 28.47. For comparison, its industry has an average Forward P/E of 18.53, which means Vertex Pharmaceuticals is trading at a premium to the group.
We can also see that VRTX currently has a PEG ratio of 1.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.49 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
