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Vertex Pharmaceuticals (VRTX) Stock Drops Despite Market Gains: Important Facts to Note
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In the latest trading session, Vertex Pharmaceuticals (VRTX - Free Report) closed at $438.75, marking a -1.9% move from the previous day. This change lagged the S&P 500's daily gain of 0.11%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.18%.
Coming into today, shares of the drugmaker had lost 6.41% in the past month. In that same time, the Medical sector lost 6.43%, while the S&P 500 lost 4.28%.
Investors will be eagerly watching for the performance of Vertex Pharmaceuticals in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.43, signifying a 9.11% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.04 billion, up 9.59% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $19.13 per share and a revenue of $12.97 billion, demonstrating changes of +3.97% and +8.05%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Vertex Pharmaceuticals. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.01% higher. Vertex Pharmaceuticals is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Vertex Pharmaceuticals is holding a Forward P/E ratio of 23.38. This signifies a premium in comparison to the average Forward P/E of 21.19 for its industry.
It's also important to note that VRTX currently trades at a PEG ratio of 1.69. 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. As the market closed yesterday, the Medical - Biomedical and Genetics industry was having an average PEG ratio of 1.51.
The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 145, this industry ranks in the bottom 41% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Vertex Pharmaceuticals (VRTX) Stock Drops Despite Market Gains: Important Facts to Note
In the latest trading session, Vertex Pharmaceuticals (VRTX - Free Report) closed at $438.75, marking a -1.9% move from the previous day. This change lagged the S&P 500's daily gain of 0.11%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.18%.
Coming into today, shares of the drugmaker had lost 6.41% in the past month. In that same time, the Medical sector lost 6.43%, while the S&P 500 lost 4.28%.
Investors will be eagerly watching for the performance of Vertex Pharmaceuticals in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.43, signifying a 9.11% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.04 billion, up 9.59% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $19.13 per share and a revenue of $12.97 billion, demonstrating changes of +3.97% and +8.05%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Vertex Pharmaceuticals. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.01% higher. Vertex Pharmaceuticals is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Vertex Pharmaceuticals is holding a Forward P/E ratio of 23.38. This signifies a premium in comparison to the average Forward P/E of 21.19 for its industry.
It's also important to note that VRTX currently trades at a PEG ratio of 1.69. 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. As the market closed yesterday, the Medical - Biomedical and Genetics industry was having an average PEG ratio of 1.51.
The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 145, this industry ranks in the bottom 41% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.