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Vertex Pharmaceuticals (VRTX) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest trading session, Vertex Pharmaceuticals (VRTX - Free Report) closed at $528.90, marking a -3.15% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.58%. Meanwhile, the Dow experienced a drop of 1.18%, and the technology-dominated Nasdaq saw a decrease of 0.32%.
Heading into today, shares of the drugmaker had gained 4.24% over the past month, outpacing the Medical sector's gain of 2.73% and the S&P 500's loss of 0.36%.
Market participants will be closely following the financial results of Vertex Pharmaceuticals in its upcoming release. On that day, Vertex Pharmaceuticals is projected to report earnings of $4.94 per share, which would represent year-over-year growth of 2.92%. Alongside, our most recent consensus estimate is anticipating revenue of $3.4 billion, indicating a 10.36% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.02 per share and a revenue of $13.2 billion, signifying shifts of +3.37% and +10.01%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Vertex Pharmaceuticals. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 0.08% rise in the Zacks Consensus EPS estimate. Vertex Pharmaceuticals is currently a Zacks Rank #3 (Hold).
Looking at valuation, Vertex Pharmaceuticals is presently trading at a Forward P/E ratio of 28.71. This indicates a premium in contrast to its industry's Forward P/E of 21.65.
Also, we should mention that VRTX has a PEG ratio of 2.1. 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. The average PEG ratio for the Medical - Biomedical and Genetics industry stood at 1.93 at the close of the market yesterday.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Vertex Pharmaceuticals (VRTX) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, Vertex Pharmaceuticals (VRTX - Free Report) closed at $528.90, marking a -3.15% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.58%. Meanwhile, the Dow experienced a drop of 1.18%, and the technology-dominated Nasdaq saw a decrease of 0.32%.
Heading into today, shares of the drugmaker had gained 4.24% over the past month, outpacing the Medical sector's gain of 2.73% and the S&P 500's loss of 0.36%.
Market participants will be closely following the financial results of Vertex Pharmaceuticals in its upcoming release. On that day, Vertex Pharmaceuticals is projected to report earnings of $4.94 per share, which would represent year-over-year growth of 2.92%. Alongside, our most recent consensus estimate is anticipating revenue of $3.4 billion, indicating a 10.36% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.02 per share and a revenue of $13.2 billion, signifying shifts of +3.37% and +10.01%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Vertex Pharmaceuticals. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 0.08% rise in the Zacks Consensus EPS estimate. Vertex Pharmaceuticals is currently a Zacks Rank #3 (Hold).
Looking at valuation, Vertex Pharmaceuticals is presently trading at a Forward P/E ratio of 28.71. This indicates a premium in contrast to its industry's Forward P/E of 21.65.
Also, we should mention that VRTX has a PEG ratio of 2.1. 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. The average PEG ratio for the Medical - Biomedical and Genetics industry stood at 1.93 at the close of the market yesterday.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.