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Vertex Pharmaceuticals (VRTX) Outpaces Stock Market Gains: What You Should Know

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Vertex Pharmaceuticals (VRTX - Free Report) closed at $241.31 in the latest trading session, marking a +1.57% move from the prior day. This change outpaced the S&P 500's 0.36% gain on the day. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq added 0.69%.

Coming into today, shares of the drugmaker had gained 1.33% in the past month. In that same time, the Medical sector gained 3.29%, while the S&P 500 gained 4.27%.

Investors will be hoping for strength from VRTX as it approaches its next earnings release, which is expected to be February 1, 2021. The company is expected to report EPS of $2.65, up 55.88% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.58 billion, up 11.92% from the year-ago period.

It is also important to note the recent changes to analyst estimates for VRTX. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. VRTX is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note VRTX's current valuation metrics, including its Forward P/E ratio of 21.28. This represents a discount compared to its industry's average Forward P/E of 30.99.

Also, we should mention that VRTX has a PEG ratio of 1.04. 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. VRTX's industry had an average PEG ratio of 1.24 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 221, which puts it in the bottom 14% 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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