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Vertex Pharmaceuticals (VRTX) Stock Moves -0.62%: What You Should Know

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In the latest market close, Vertex Pharmaceuticals (VRTX - Free Report) reached $409.56, with a -0.62% movement compared to the previous day. This change was narrower than the S&P 500's 1.54% loss on the day. Meanwhile, the Dow experienced a drop of 1.63%, and the technology-dominated Nasdaq saw a decrease of 1.63%.

Shares of the drugmaker witnessed a loss of 11.21% over the previous month, trailing the performance of the Medical sector with its loss of 5.34% and the S&P 500's loss of 2.2%.

The investment community will be closely monitoring the performance of Vertex Pharmaceuticals in its forthcoming earnings report. It is anticipated that the company will report an EPS of $4, marking a 4.76% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.77 billion, showing a 10.18% escalation compared to the year-ago quarter.

It's also important for investors to be aware of any recent modifications to analyst estimates for Vertex Pharmaceuticals. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 2.03% fall in the Zacks Consensus EPS estimate. Right now, Vertex Pharmaceuticals possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Vertex Pharmaceuticals has a Forward P/E ratio of 22.58 right now. For comparison, its industry has an average Forward P/E of 22.58, which means Vertex Pharmaceuticals is trading at no noticeable deviation to the group.

Meanwhile, VRTX's PEG ratio is currently 1.85. 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 1.47.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 26% echelons 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.

To follow VRTX in the coming trading sessions, be sure to utilize Zacks.com.


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