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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 $209.93 in the latest trading session, marking a -0.58% move from the prior day. This move lagged the S&P 500's daily gain of 0.88%.

Prior to today's trading, shares of the drugmaker had lost 0.94% over the past month. This has was narrower than the Medical sector's loss of 1.22% and lagged the S&P 500's gain of 0.15% in that time.

Investors will be hoping for strength from VRTX as it approaches its next earnings release. The company is expected to report EPS of $2.73, up 4.6% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.72 billion, up 12.54% from the prior-year quarter.

VRTX's full-year Zacks Consensus Estimates are calling for earnings of $11.22 per share and revenue of $6.92 billion. These results would represent year-over-year changes of +8.72% and +11.44%, respectively.

Investors might also notice recent changes to analyst estimates for VRTX. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. VRTX currently has a Zacks Rank of #3 (Hold).

Digging into valuation, VRTX currently has a Forward P/E ratio of 18.82. Its industry sports an average Forward P/E of 18.98, so we one might conclude that VRTX is trading at a discount comparatively.

Investors should also note that VRTX has a PEG ratio of 1.59 right now. 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 1.29 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 202, putting it in the bottom 21% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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