Vertex Pharmaceuticals (VRTX) closed at $444.41 in the latest trading session, marking a +2% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.75%. Meanwhile, the Dow gained 1.86%, and the Nasdaq, a tech-heavy index, added 2.54%.
Shares of the drugmaker witnessed a loss of 3.83% over the previous month, trailing the performance of the Medical sector with its gain of 3.73%, and the S&P 500's loss of 1.63%.
The upcoming earnings release of Vertex Pharmaceuticals will be of great interest to investors. It is anticipated that the company will report an EPS of $4.79, marking a 5.97% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $3.22 billion, up 8.46% from the prior-year quarter.
VRTX's full-year Zacks Consensus Estimates are calling for earnings of $19.15 per share and revenue of $13.03 billion. These results would represent year-over-year changes of +4.08% and +8.57%, respectively.
It is also important to note the recent changes to analyst estimates for Vertex Pharmaceuticals. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.16% higher. Vertex Pharmaceuticals is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Vertex Pharmaceuticals is currently trading at a Forward P/E ratio of 22.76. This expresses a premium compared to the average Forward P/E of 20.9 of its industry.
It is also worth noting that VRTX currently has a PEG ratio of 1.66. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.46 at yesterday's closing price.
The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 153, positioning it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).