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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 $184.07 in the latest trading session, marking a -0.5% move from the prior day. This move lagged the S&P 500's daily gain of 0.18%.

Prior to today's trading, shares of the drugmaker had gained 0.86% over the past month. This has outpaced the Medical sector's loss of 1.77% and lagged the S&P 500's gain of 2.96% in that time.

Wall Street will be looking for positivity from VRTX as it approaches its next earnings report date. This is expected to be November 2, 2021. The company is expected to report EPS of $3.12, up 18.18% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.85 billion, up 20.31% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.43 per share and revenue of $7.29 billion, which would represent changes of +20.45% and +17.44%, respectively, from the prior year.

Any recent changes to analyst estimates for VRTX should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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 0.86% higher within the past month. VRTX is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that VRTX has a Forward P/E ratio of 14.88 right now. This valuation marks a discount compared to its industry's average Forward P/E of 27.71.

Also, we should mention that VRTX has a PEG ratio of 1.53. 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 1.54 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 170, which puts it in the bottom 34% 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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