Vertex Pharmaceuticals (VRTX) closed the most recent trading day at $438.92, moving -2.36% from the previous trading session. This change lagged the S&P 500's daily gain of 0.26%. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.25%.
Prior to today's trading, shares of the drugmaker had gained 0% lagged the Medical sector's gain of 0.92% and the S&P 500's gain of 1.57%.
The upcoming earnings release of Vertex Pharmaceuticals will be of great interest to investors. In that report, analysts expect Vertex Pharmaceuticals to post earnings of $5.05 per share. This would mark year-over-year growth of 26.88%. Meanwhile, the latest consensus estimate predicts the revenue to be $3.16 billion, indicating a 8.65% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $18.4 per share and revenue of $11.97 billion. These totals would mark changes of +4280.95% and 0%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Vertex Pharmaceuticals. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. At present, Vertex Pharmaceuticals boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Vertex Pharmaceuticals is presently trading at a Forward P/E ratio of 22.52. For comparison, its industry has an average Forward P/E of 19.88, which means Vertex Pharmaceuticals is trading at a premium to the group.
The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 100, this industry ranks in the top 41% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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