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Why the Market Dipped But Vertex Pharmaceuticals (VRTX) Gained Today
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In the latest close session, Vertex Pharmaceuticals (VRTX - Free Report) was up +1.28% at $458.99. The stock outpaced the S&P 500's daily loss of 1.22%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 1.35%.
Shares of the drugmaker witnessed a gain of 4.34% over the previous month, beating the performance of the Medical sector with its gain of 4.11%, and the S&P 500's gain of 1.56%.
The upcoming earnings release of Vertex Pharmaceuticals will be of great interest to investors. In that report, analysts expect Vertex Pharmaceuticals to post earnings of $4.79 per share. This would mark year-over-year growth of 5.97%. At the same time, our most recent consensus estimate is projecting a revenue of $3.22 billion, reflecting a 8.46% rise from the equivalent quarter last year.
VRTX's full-year Zacks Consensus Estimates are calling for earnings of $19.15 per share and revenue of $13.03 billion. These results would represent year-over-year changes of +4.08% and +8.57%, respectively.
Investors might also notice recent changes to analyst estimates for Vertex Pharmaceuticals. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. Vertex Pharmaceuticals presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Vertex Pharmaceuticals is presently trading at a Forward P/E ratio of 23.67. This represents a premium compared to its industry average Forward P/E of 21.05.
It is also worth noting that VRTX currently has a PEG ratio of 1.72. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.48 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 150, finds itself in the bottom 39% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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Why the Market Dipped But Vertex Pharmaceuticals (VRTX) Gained Today
In the latest close session, Vertex Pharmaceuticals (VRTX - Free Report) was up +1.28% at $458.99. The stock outpaced the S&P 500's daily loss of 1.22%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 1.35%.
Shares of the drugmaker witnessed a gain of 4.34% over the previous month, beating the performance of the Medical sector with its gain of 4.11%, and the S&P 500's gain of 1.56%.
The upcoming earnings release of Vertex Pharmaceuticals will be of great interest to investors. In that report, analysts expect Vertex Pharmaceuticals to post earnings of $4.79 per share. This would mark year-over-year growth of 5.97%. At the same time, our most recent consensus estimate is projecting a revenue of $3.22 billion, reflecting a 8.46% rise from the equivalent quarter last year.
VRTX's full-year Zacks Consensus Estimates are calling for earnings of $19.15 per share and revenue of $13.03 billion. These results would represent year-over-year changes of +4.08% and +8.57%, respectively.
Investors might also notice recent changes to analyst estimates for Vertex Pharmaceuticals. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. Vertex Pharmaceuticals presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Vertex Pharmaceuticals is presently trading at a Forward P/E ratio of 23.67. This represents a premium compared to its industry average Forward P/E of 21.05.
It is also worth noting that VRTX currently has a PEG ratio of 1.72. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.48 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 150, finds itself in the bottom 39% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.