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Vertex Pharmaceuticals (VRTX) Stock Sinks As Market Gains: Here's Why
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Vertex Pharmaceuticals (VRTX - Free Report) closed the most recent trading day at $508.34, moving -1.55% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.17%. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq gained 0.4%.
Coming into today, shares of the drugmaker had lost 4.43% in the past month. In that same time, the Medical sector gained 0.65%, while the S&P 500 lost 1.29%.
The investment community will be paying close attention to the earnings performance of Vertex Pharmaceuticals in its upcoming release. The company's earnings per share (EPS) are projected to be $4.84, reflecting a 0.83% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.4 billion, up 10.43% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $18.86 per share and a revenue of $13.21 billion, demonstrating changes of +2.5% and +10.08%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Vertex Pharmaceuticals. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 1.04% fall in the Zacks Consensus EPS estimate. As of now, Vertex Pharmaceuticals holds a Zacks Rank of #3 (Hold).
In terms of valuation, Vertex Pharmaceuticals is presently being traded at a Forward P/E ratio of 27.38. Its industry sports an average Forward P/E of 23.81, so one might conclude that Vertex Pharmaceuticals is trading at a premium comparatively.
We can also see that VRTX currently has a PEG ratio of 2. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Medical - Biomedical and Genetics industry had an average PEG ratio of 1.94.
The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 161, this industry ranks in the bottom 35% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Vertex Pharmaceuticals (VRTX) Stock Sinks As Market Gains: Here's Why
Vertex Pharmaceuticals (VRTX - Free Report) closed the most recent trading day at $508.34, moving -1.55% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.17%. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq gained 0.4%.
Coming into today, shares of the drugmaker had lost 4.43% in the past month. In that same time, the Medical sector gained 0.65%, while the S&P 500 lost 1.29%.
The investment community will be paying close attention to the earnings performance of Vertex Pharmaceuticals in its upcoming release. The company's earnings per share (EPS) are projected to be $4.84, reflecting a 0.83% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.4 billion, up 10.43% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $18.86 per share and a revenue of $13.21 billion, demonstrating changes of +2.5% and +10.08%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Vertex Pharmaceuticals. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 1.04% fall in the Zacks Consensus EPS estimate. As of now, Vertex Pharmaceuticals holds a Zacks Rank of #3 (Hold).
In terms of valuation, Vertex Pharmaceuticals is presently being traded at a Forward P/E ratio of 27.38. Its industry sports an average Forward P/E of 23.81, so one might conclude that Vertex Pharmaceuticals is trading at a premium comparatively.
We can also see that VRTX currently has a PEG ratio of 2. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Medical - Biomedical and Genetics industry had an average PEG ratio of 1.94.
The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 161, this industry ranks in the bottom 35% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.