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Vertex Pharmaceuticals (VRTX) Gains As Market Dips: What You Should Know

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Vertex Pharmaceuticals (VRTX - Free Report) closed the most recent trading day at $394.28, moving +0.2% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.88%. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq lost 2.05%.

The drugmaker's stock has dropped by 5.35% in the past month, exceeding the Medical sector's loss of 6.4% and lagging the S&P 500's loss of 2.57%.

The investment community will be paying close attention to the earnings performance of Vertex Pharmaceuticals in its upcoming release. The company is slated to reveal its earnings on May 6, 2024. On that day, Vertex Pharmaceuticals is projected to report earnings of $4.10 per share, which would represent year-over-year growth of 34.43%. In the meantime, our current consensus estimate forecasts the revenue to be $2.56 billion, indicating a 7.75% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $16.76 per share and revenue of $10.69 billion, indicating changes of +10.05% and +8.29%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Vertex Pharmaceuticals. These revisions help to show the ever-changing nature of near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Currently, Vertex Pharmaceuticals is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, Vertex Pharmaceuticals currently has a Forward P/E ratio of 23.48. This expresses a premium compared to the average Forward P/E of 22.02 of its industry.

It's also important to note that VRTX currently trades at a PEG ratio of 1.65. 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. By the end of yesterday's trading, the Medical - Biomedical and Genetics industry had an average PEG ratio of 1.65.

The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 84, this industry ranks in the top 34% of all industries, numbering over 250.

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.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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