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Vertex Pharmaceuticals (VRTX) Outpaces Stock Market Gains: What You Should Know
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In the latest market close, Vertex Pharmaceuticals (VRTX - Free Report) reached $406.60, with a +0.38% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.27%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.19%.
Coming into today, shares of the drugmaker had gained 15.95% in the past month. In that same time, the Medical sector gained 7.01%, while the S&P 500 gained 6.94%.
Analysts and investors alike will be keeping a close eye on the performance of Vertex Pharmaceuticals in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.07, signifying an 8.24% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.5 billion, showing an 8.43% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $15.08 per share and a revenue of $9.85 billion, demonstrating changes of +1.34% and +10.3%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Vertex Pharmaceuticals. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.19% higher within the past month. Vertex Pharmaceuticals is currently a Zacks Rank #3 (Hold).
With respect to valuation, Vertex Pharmaceuticals is currently being traded at a Forward P/E ratio of 26.87. This represents a premium compared to its industry's average Forward P/E of 17.45.
One should further note that VRTX currently holds a PEG ratio of 2.43. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Medical - Biomedical and Genetics industry held an average PEG ratio of 1.89.
The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 61, positioning it in the top 25% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Vertex Pharmaceuticals (VRTX) Outpaces Stock Market Gains: What You Should Know
In the latest market close, Vertex Pharmaceuticals (VRTX - Free Report) reached $406.60, with a +0.38% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.27%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.19%.
Coming into today, shares of the drugmaker had gained 15.95% in the past month. In that same time, the Medical sector gained 7.01%, while the S&P 500 gained 6.94%.
Analysts and investors alike will be keeping a close eye on the performance of Vertex Pharmaceuticals in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.07, signifying an 8.24% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.5 billion, showing an 8.43% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $15.08 per share and a revenue of $9.85 billion, demonstrating changes of +1.34% and +10.3%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Vertex Pharmaceuticals. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.19% higher within the past month. Vertex Pharmaceuticals is currently a Zacks Rank #3 (Hold).
With respect to valuation, Vertex Pharmaceuticals is currently being traded at a Forward P/E ratio of 26.87. This represents a premium compared to its industry's average Forward P/E of 17.45.
One should further note that VRTX currently holds a PEG ratio of 2.43. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Medical - Biomedical and Genetics industry held an average PEG ratio of 1.89.
The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 61, positioning it in the top 25% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.