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Vertex Pharmaceuticals (VRTX) Dips More Than Broader Market: What You Should Know

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The most recent trading session ended with Vertex Pharmaceuticals (VRTX - Free Report) standing at $416.96, reflecting a -1.72% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily loss of 0.21%. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.89%.

Coming into today, shares of the drugmaker had lost 5.19% in the past month. In that same time, the Medical sector lost 2.46%, while the S&P 500 lost 1.56%.

The upcoming earnings release of Vertex Pharmaceuticals will be of great interest to investors. On that day, Vertex Pharmaceuticals is projected to report earnings of $4 per share, which would represent a year-over-year decline of 4.76%. Meanwhile, our latest consensus estimate is calling for revenue of $2.77 billion, up 10.18% from the prior-year quarter.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Vertex Pharmaceuticals. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.04% downward. Right now, Vertex Pharmaceuticals possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Vertex Pharmaceuticals is presently being traded at a Forward P/E ratio of 23.24. This valuation marks a premium compared to its industry's average Forward P/E of 22.2.

Also, we should mention that VRTX has a PEG ratio of 1.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. VRTX's industry had an average PEG ratio of 1.43 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 58, positioning it in the top 24% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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


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