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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 $197.89 in the latest trading session, marking a -0.22% move from the prior day. This change lagged the S&P 500's daily gain of 0.12%.

Coming into today, shares of the drugmaker had gained 4.95% in the past month. In that same time, the Medical sector lost 4.12%, while the S&P 500 gained 3%.

Investors will be hoping for strength from VRTX as it approaches its next earnings release. The company is expected to report EPS of $2.69, up 3.07% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.71 billion, up 12.2% from the year-ago period.

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 +11.52%, respectively.

Investors should also note any recent changes to analyst estimates for VRTX. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.38% higher. VRTX is currently a Zacks Rank #2 (Buy).

Looking at its valuation, VRTX is holding a Forward P/E ratio of 17.68. This valuation marks a discount compared to its industry's average Forward P/E of 24.43.

We can also see that VRTX currently has a PEG ratio of 1.49. 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 1.31 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 209, putting it in the bottom 18% 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.

To follow VRTX in the coming trading sessions, be sure to utilize Zacks.com.


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