In the latest close session, Vertex Pharmaceuticals (VRTX) was down 3.07% at $506.74. The stock trailed the S&P 500, which registered a daily gain of 0.2%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.04%.
Shares of the drugmaker witnessed a loss of 6.1% over the previous month, trailing the performance of the Medical sector with its loss of 1.75%, and the S&P 500's loss of 0.35%.
The upcoming earnings release of Vertex Pharmaceuticals will be of great interest to investors. The company is forecasted to report an EPS of $4.86, showcasing a 1.25% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $3.4 billion, up 10.43% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $18.85 per share and a revenue of $13.21 billion, signifying shifts of +2.45% and +10.09%, respectively, from the 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 shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.95% lower. As of now, Vertex Pharmaceuticals holds a Zacks Rank of #3 (Hold).
Looking at valuation, Vertex Pharmaceuticals is presently trading at a Forward P/E ratio of 27.73. This expresses a premium compared to the average Forward P/E of 22.46 of its industry.
We can also see that VRTX currently has a PEG ratio of 2.03. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Medical - Biomedical and Genetics industry had an average PEG ratio of 1.91.
The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 182, placing it within the bottom 27% 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.
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Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).