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Why the Market Dipped But Vertex Pharmaceuticals (VRTX) Gained Today
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Vertex Pharmaceuticals (VRTX - Free Report) ended the recent trading session at $491.34, demonstrating a +2.32% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 0.05%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 0.24%.
Shares of the drugmaker witnessed a gain of 7.19% over the previous month, beating the performance of the Medical sector with its gain of 4.42%, and the S&P 500's loss of 1.42%.
The investment community will be closely monitoring the performance of Vertex Pharmaceuticals in its forthcoming earnings report. The company's upcoming EPS is projected at $4.79, signifying a 5.97% increase compared to the same quarter of the previous year. 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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $19.15 per share and revenue of $13.03 billion. These totals would mark changes of +4.08% and +8.57%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Vertex Pharmaceuticals. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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 past month, there's been a 0.12% rise in the Zacks Consensus EPS estimate. Vertex Pharmaceuticals currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Vertex Pharmaceuticals is currently being traded at a Forward P/E ratio of 25.08. This denotes a premium relative to the industry average Forward P/E of 21.83.
Meanwhile, VRTX's PEG ratio is currently 1.83. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Medical - Biomedical and Genetics industry was having an average PEG ratio of 1.61.
The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 150, placing it within the bottom 39% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Why the Market Dipped But Vertex Pharmaceuticals (VRTX) Gained Today
Vertex Pharmaceuticals (VRTX - Free Report) ended the recent trading session at $491.34, demonstrating a +2.32% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 0.05%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 0.24%.
Shares of the drugmaker witnessed a gain of 7.19% over the previous month, beating the performance of the Medical sector with its gain of 4.42%, and the S&P 500's loss of 1.42%.
The investment community will be closely monitoring the performance of Vertex Pharmaceuticals in its forthcoming earnings report. The company's upcoming EPS is projected at $4.79, signifying a 5.97% increase compared to the same quarter of the previous year. 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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $19.15 per share and revenue of $13.03 billion. These totals would mark changes of +4.08% and +8.57%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Vertex Pharmaceuticals. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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 past month, there's been a 0.12% rise in the Zacks Consensus EPS estimate. Vertex Pharmaceuticals currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Vertex Pharmaceuticals is currently being traded at a Forward P/E ratio of 25.08. This denotes a premium relative to the industry average Forward P/E of 21.83.
Meanwhile, VRTX's PEG ratio is currently 1.83. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Medical - Biomedical and Genetics industry was having an average PEG ratio of 1.61.
The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 150, placing it within the bottom 39% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.