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Vertex Pharmaceuticals (VRTX) Gains As Market Dips: What You Should Know
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In the latest trading session, Vertex Pharmaceuticals (VRTX - Free Report) closed at $287.24, marking a +0.13% move from the previous day. This change outpaced the S&P 500's 1.45% loss on the day. Elsewhere, the Dow lost 1.07%, while the tech-heavy Nasdaq lost 3.06%.
Prior to today's trading, shares of the drugmaker had lost 1.62% over the past month. This has was narrower than the Medical sector's loss of 4.01% and the S&P 500's loss of 3.83% in that time.
Wall Street will be looking for positivity from Vertex Pharmaceuticals as it approaches its next earnings report date. On that day, Vertex Pharmaceuticals is projected to report earnings of $3.10 per share, which would represent a year-over-year decline of 11.93%. Our most recent consensus estimate is calling for quarterly revenue of $2.3 billion, up 9.66% from the year-ago period.
VRTX's full-year Zacks Consensus Estimates are calling for earnings of $14.21 per share and revenue of $9.64 billion. These results would represent year-over-year changes of -4.5% and +7.9%, respectively.
Investors should also note any recent changes to analyst estimates for Vertex Pharmaceuticals. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.97% lower. Vertex Pharmaceuticals currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Vertex Pharmaceuticals is currently trading at a Forward P/E ratio of 20.19. Its industry sports an average Forward P/E of 18, so we one might conclude that Vertex Pharmaceuticals is trading at a premium comparatively.
Investors should also note that VRTX has a PEG ratio of 2.17 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.65 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% 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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Vertex Pharmaceuticals (VRTX) Gains As Market Dips: What You Should Know
In the latest trading session, Vertex Pharmaceuticals (VRTX - Free Report) closed at $287.24, marking a +0.13% move from the previous day. This change outpaced the S&P 500's 1.45% loss on the day. Elsewhere, the Dow lost 1.07%, while the tech-heavy Nasdaq lost 3.06%.
Prior to today's trading, shares of the drugmaker had lost 1.62% over the past month. This has was narrower than the Medical sector's loss of 4.01% and the S&P 500's loss of 3.83% in that time.
Wall Street will be looking for positivity from Vertex Pharmaceuticals as it approaches its next earnings report date. On that day, Vertex Pharmaceuticals is projected to report earnings of $3.10 per share, which would represent a year-over-year decline of 11.93%. Our most recent consensus estimate is calling for quarterly revenue of $2.3 billion, up 9.66% from the year-ago period.
VRTX's full-year Zacks Consensus Estimates are calling for earnings of $14.21 per share and revenue of $9.64 billion. These results would represent year-over-year changes of -4.5% and +7.9%, respectively.
Investors should also note any recent changes to analyst estimates for Vertex Pharmaceuticals. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.97% lower. Vertex Pharmaceuticals currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Vertex Pharmaceuticals is currently trading at a Forward P/E ratio of 20.19. Its industry sports an average Forward P/E of 18, so we one might conclude that Vertex Pharmaceuticals is trading at a premium comparatively.
Investors should also note that VRTX has a PEG ratio of 2.17 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.65 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% 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.