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Vertex Pharmaceuticals (VRTX) Gains As Market Dips: What You Should Know
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Vertex Pharmaceuticals (VRTX - Free Report) closed at $223.96 in the latest trading session, marking a +0.95% move from the prior day. This move outpaced the S&P 500's daily loss of 0.14%. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.02%.
Coming into today, shares of the drugmaker had gained 6.63% in the past month. In that same time, the Medical sector lost 2.72%, while the S&P 500 lost 0.13%.
Investors will be hoping for strength from Vertex Pharmaceuticals as it approaches its next earnings release. The company is expected to report EPS of $3.32, up 32.27% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2 billion, up 23.11% from the year-ago period.
Any recent changes to analyst estimates for Vertex Pharmaceuticals should also be noted by investors. 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.
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 remained stagnant. Vertex Pharmaceuticals is currently a Zacks Rank #3 (Hold).
In terms of valuation, Vertex Pharmaceuticals is currently trading at a Forward P/E ratio of 16.66. This valuation marks a discount compared to its industry's average Forward P/E of 17.81.
Investors should also note that VRTX has a PEG ratio of 1.62 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. VRTX's industry had an average PEG ratio of 1.27 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 157, putting it in the bottom 39% 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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Vertex Pharmaceuticals (VRTX) Gains As Market Dips: What You Should Know
Vertex Pharmaceuticals (VRTX - Free Report) closed at $223.96 in the latest trading session, marking a +0.95% move from the prior day. This move outpaced the S&P 500's daily loss of 0.14%. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.02%.
Coming into today, shares of the drugmaker had gained 6.63% in the past month. In that same time, the Medical sector lost 2.72%, while the S&P 500 lost 0.13%.
Investors will be hoping for strength from Vertex Pharmaceuticals as it approaches its next earnings release. The company is expected to report EPS of $3.32, up 32.27% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2 billion, up 23.11% from the year-ago period.
Any recent changes to analyst estimates for Vertex Pharmaceuticals should also be noted by investors. 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.
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 remained stagnant. Vertex Pharmaceuticals is currently a Zacks Rank #3 (Hold).
In terms of valuation, Vertex Pharmaceuticals is currently trading at a Forward P/E ratio of 16.66. This valuation marks a discount compared to its industry's average Forward P/E of 17.81.
Investors should also note that VRTX has a PEG ratio of 1.62 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. VRTX's industry had an average PEG ratio of 1.27 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 157, putting it in the bottom 39% 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.