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Vertex Pharmaceuticals (VRTX) Gains As Market Dips: What You Should Know
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Vertex Pharmaceuticals (VRTX - Free Report) closed the most recent trading day at $215.41, moving +0.41% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.14%. At the same time, the Dow lost 1.23%, and the tech-heavy Nasdaq lost 0.36%.
Heading into today, shares of the drugmaker had gained 17.31% over the past month, outpacing the Medical sector's loss of 0.74% and the S&P 500's loss of 1.37% in that time.
Investors will be hoping for strength from Vertex Pharmaceuticals as it approaches its next earnings release. On that day, Vertex Pharmaceuticals is projected to report earnings of $3.32 per share, which would represent year-over-year growth of 32.27%. Meanwhile, our latest consensus estimate is calling for revenue of $2 billion, up 23.11% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.94 per share and revenue of $7.5 billion, which would represent changes of +25.39% and +20.81%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Vertex Pharmaceuticals. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. Vertex Pharmaceuticals is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Vertex Pharmaceuticals is currently trading at a Forward P/E ratio of 16.58. This represents a discount compared to its industry's average Forward P/E of 23.07.
It is also worth noting that VRTX currently has a PEG ratio of 1.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.6 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Vertex Pharmaceuticals (VRTX) Gains As Market Dips: What You Should Know
Vertex Pharmaceuticals (VRTX - Free Report) closed the most recent trading day at $215.41, moving +0.41% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.14%. At the same time, the Dow lost 1.23%, and the tech-heavy Nasdaq lost 0.36%.
Heading into today, shares of the drugmaker had gained 17.31% over the past month, outpacing the Medical sector's loss of 0.74% and the S&P 500's loss of 1.37% in that time.
Investors will be hoping for strength from Vertex Pharmaceuticals as it approaches its next earnings release. On that day, Vertex Pharmaceuticals is projected to report earnings of $3.32 per share, which would represent year-over-year growth of 32.27%. Meanwhile, our latest consensus estimate is calling for revenue of $2 billion, up 23.11% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.94 per share and revenue of $7.5 billion, which would represent changes of +25.39% and +20.81%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Vertex Pharmaceuticals. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. Vertex Pharmaceuticals is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Vertex Pharmaceuticals is currently trading at a Forward P/E ratio of 16.58. This represents a discount compared to its industry's average Forward P/E of 23.07.
It is also worth noting that VRTX currently has a PEG ratio of 1.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.6 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.