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Vertex Pharmaceuticals (VRTX) Stock Sinks As Market Gains: What You Should Know
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Vertex Pharmaceuticals (VRTX - Free Report) closed at $217.62 in the latest trading session, marking a -0.86% move from the prior day. This change lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.1%.
Prior to today's trading, shares of the drugmaker had gained 4.52% over the past month. This has lagged the Medical sector's gain of 5.4% and outpaced the S&P 500's gain of 1.82% in that time.
Investors will be hoping for strength from VRTX as it approaches its next earnings release. On that day, VRTX is projected to report earnings of $1.18 per share, which would represent a year-over-year decline of 9.23%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $996.44 million, up 14.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.81 per share and revenue of $3.74 billion, which would represent changes of +17.89% and +22.84%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for VRTX. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. VRTX is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, VRTX is holding a Forward P/E ratio of 45.64. Its industry sports an average Forward P/E of 24.59, so we one might conclude that VRTX is trading at a premium comparatively.
Also, we should mention that VRTX has a PEG ratio of 1.56. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VRTX's industry had an average PEG ratio of 1.76 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 56, putting it in the top 22% of all 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.
To follow VRTX in the coming trading sessions, be sure to utilize Zacks.com.
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Vertex Pharmaceuticals (VRTX) Stock Sinks As Market Gains: What You Should Know
Vertex Pharmaceuticals (VRTX - Free Report) closed at $217.62 in the latest trading session, marking a -0.86% move from the prior day. This change lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.1%.
Prior to today's trading, shares of the drugmaker had gained 4.52% over the past month. This has lagged the Medical sector's gain of 5.4% and outpaced the S&P 500's gain of 1.82% in that time.
Investors will be hoping for strength from VRTX as it approaches its next earnings release. On that day, VRTX is projected to report earnings of $1.18 per share, which would represent a year-over-year decline of 9.23%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $996.44 million, up 14.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.81 per share and revenue of $3.74 billion, which would represent changes of +17.89% and +22.84%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for VRTX. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. VRTX is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, VRTX is holding a Forward P/E ratio of 45.64. Its industry sports an average Forward P/E of 24.59, so we one might conclude that VRTX is trading at a premium comparatively.
Also, we should mention that VRTX has a PEG ratio of 1.56. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VRTX's industry had an average PEG ratio of 1.76 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 56, putting it in the top 22% of all 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.
To follow VRTX in the coming trading sessions, be sure to utilize Zacks.com.