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Vertex Pharmaceuticals (VRTX) Outpaces Stock Market Gains: What You Should Know
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Vertex Pharmaceuticals (VRTX - Free Report) closed the most recent trading day at $348.16, moving +1.42% from the previous trading session. This change outpaced the S&P 500's 0.37% gain on the day. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq lost 1.26%.
Heading into today, shares of the drugmaker had gained 2.82% over the past month, outpacing the Medical sector's gain of 0.08% and lagging the S&P 500's gain of 4.31% in that time.
Investors will be hoping for strength from Vertex Pharmaceuticals as it approaches its next earnings release. On that day, Vertex Pharmaceuticals is projected to report earnings of $3.83 per share, which would represent year-over-year growth of 6.39%. Our most recent consensus estimate is calling for quarterly revenue of $2.41 billion, up 9.7% from the year-ago period.
VRTX's full-year Zacks Consensus Estimates are calling for earnings of $14.48 per share and revenue of $9.74 billion. These results would represent year-over-year changes of -2.69% and +9.05%, respectively.
Investors should also note any recent changes to analyst estimates for Vertex Pharmaceuticals. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 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 0.22% lower. 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 23.71. For comparison, its industry has an average Forward P/E of 19.11, which means Vertex Pharmaceuticals is trading at a premium to the group.
Investors should also note that VRTX has a PEG ratio of 2.88 right now. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.84 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 112, putting it in the top 45% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Vertex Pharmaceuticals (VRTX) Outpaces Stock Market Gains: What You Should Know
Vertex Pharmaceuticals (VRTX - Free Report) closed the most recent trading day at $348.16, moving +1.42% from the previous trading session. This change outpaced the S&P 500's 0.37% gain on the day. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq lost 1.26%.
Heading into today, shares of the drugmaker had gained 2.82% over the past month, outpacing the Medical sector's gain of 0.08% and lagging the S&P 500's gain of 4.31% in that time.
Investors will be hoping for strength from Vertex Pharmaceuticals as it approaches its next earnings release. On that day, Vertex Pharmaceuticals is projected to report earnings of $3.83 per share, which would represent year-over-year growth of 6.39%. Our most recent consensus estimate is calling for quarterly revenue of $2.41 billion, up 9.7% from the year-ago period.
VRTX's full-year Zacks Consensus Estimates are calling for earnings of $14.48 per share and revenue of $9.74 billion. These results would represent year-over-year changes of -2.69% and +9.05%, respectively.
Investors should also note any recent changes to analyst estimates for Vertex Pharmaceuticals. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 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 0.22% lower. 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 23.71. For comparison, its industry has an average Forward P/E of 19.11, which means Vertex Pharmaceuticals is trading at a premium to the group.
Investors should also note that VRTX has a PEG ratio of 2.88 right now. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.84 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 112, putting it in the top 45% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.