We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Vertex Pharmaceuticals (VRTX) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, Vertex Pharmaceuticals (VRTX - Free Report) closed at $316.33, marking a +0.4% move from the previous day. This move outpaced the S&P 500's daily gain of 0.37%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 0.62%.
Heading into today, shares of the drugmaker had gained 8.45% over the past month, outpacing the Medical sector's gain of 3.28% and the S&P 500's gain of 3.71% in that time.
Vertex Pharmaceuticals will be looking to display strength as it nears its next earnings release. On that day, Vertex Pharmaceuticals is projected to report earnings of $3.41 per share, which would represent a year-over-year decline of 3.13%. Meanwhile, our latest consensus estimate is calling for revenue of $2.3 billion, up 9.67% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.16 per share and revenue of $9.64 billion, which would represent changes of -4.84% and +7.94%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Vertex Pharmaceuticals. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 has moved 0.64% lower. Vertex Pharmaceuticals is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Vertex Pharmaceuticals is currently trading at a Forward P/E ratio of 22.26. For comparison, its industry has an average Forward P/E of 20.54, which means Vertex Pharmaceuticals is trading at a premium to the group.
Also, we should mention that VRTX has a PEG ratio of 2.4. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.95 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 78, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Vertex Pharmaceuticals (VRTX) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Vertex Pharmaceuticals (VRTX - Free Report) closed at $316.33, marking a +0.4% move from the previous day. This move outpaced the S&P 500's daily gain of 0.37%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 0.62%.
Heading into today, shares of the drugmaker had gained 8.45% over the past month, outpacing the Medical sector's gain of 3.28% and the S&P 500's gain of 3.71% in that time.
Vertex Pharmaceuticals will be looking to display strength as it nears its next earnings release. On that day, Vertex Pharmaceuticals is projected to report earnings of $3.41 per share, which would represent a year-over-year decline of 3.13%. Meanwhile, our latest consensus estimate is calling for revenue of $2.3 billion, up 9.67% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.16 per share and revenue of $9.64 billion, which would represent changes of -4.84% and +7.94%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Vertex Pharmaceuticals. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 has moved 0.64% lower. Vertex Pharmaceuticals is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Vertex Pharmaceuticals is currently trading at a Forward P/E ratio of 22.26. For comparison, its industry has an average Forward P/E of 20.54, which means Vertex Pharmaceuticals is trading at a premium to the group.
Also, we should mention that VRTX has a PEG ratio of 2.4. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.95 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 78, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.