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Vertex Pharmaceuticals (VRTX) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest trading session, Vertex Pharmaceuticals (VRTX - Free Report) closed at $388.55, marking a -2% move from the previous day. This change lagged the S&P 500's 0.3% gain on the day. Elsewhere, the Dow saw a downswing of 0.48%, while the tech-heavy Nasdaq appreciated by 0.03%.

The drugmaker's stock has climbed by 2.25% in the past month, falling short of the Medical sector's gain of 7.07% and outpacing the S&P 500's gain of 2.09%.

The investment community will be paying close attention to the earnings performance of Vertex Pharmaceuticals in its upcoming release. The company is forecasted to report an EPS of $4.56, showcasing a 4.11% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $3.04 billion, reflecting a 9.8% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $17.98 per share and a revenue of $11.98 billion, representing changes of +4180.95% and +8.72%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Vertex Pharmaceuticals. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.22% higher. Vertex Pharmaceuticals is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Vertex Pharmaceuticals is presently trading at a Forward P/E ratio of 22.05. This valuation marks a premium compared to its industry average Forward P/E of 21.16.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 93, putting it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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