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Vertex Pharmaceuticals (VRTX) Rises As Market Takes a Dip: Key Facts

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Vertex Pharmaceuticals (VRTX - Free Report) closed the most recent trading day at $416.03, moving +0.09% from the previous trading session. This change outpaced the S&P 500's 0.31% loss on the day. Meanwhile, the Dow lost 0.41%, and the Nasdaq, a tech-heavy index, lost 0.27%.

Shares of the drugmaker have depreciated by 3.36% over the course of the past month, underperforming the Medical sector's loss of 0.57% and the S&P 500's gain of 3.05%.

The investment community will be paying close attention to the earnings performance of Vertex Pharmaceuticals in its upcoming release. The company's earnings per share (EPS) are projected to be $4.07, reflecting a 33.44% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.55 billion, showing a 7.34% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $16.79 per share and a revenue of $10.69 billion, indicating changes of +10.24% and +8.27%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Vertex Pharmaceuticals. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 0.19% lower. Vertex Pharmaceuticals presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Vertex Pharmaceuticals is at present trading with a Forward P/E ratio of 24.75. This represents a premium compared to its industry's average Forward P/E of 24.18.

It is also worth noting that VRTX currently has a PEG ratio of 2.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.72 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 83, finds itself in the top 33% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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