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Vertex Pharmaceuticals (VRTX) Stock Sinks As Market Gains: What You Should Know
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Vertex Pharmaceuticals (VRTX - Free Report) closed the most recent trading day at $233.91, moving -0.3% from the previous trading session. This change lagged the S&P 500's 0.11% gain on the day. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 0.2%.
Heading into today, shares of the drugmaker had gained 6.37% over the past month, outpacing the Medical sector's gain of 0.94% and the S&P 500's gain of 3.25% in that time.
VRTX will be looking to display strength as it nears its next earnings release, which is expected to be January 30, 2020. In that report, analysts expect VRTX to post earnings of $1.20 per share. This would mark a year-over-year decline of 7.69%. Our most recent consensus estimate is calling for quarterly revenue of $996.44 million, up 14.52% from the year-ago period.
Any recent changes to analyst estimates for VRTX should also be noted by investors. 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. VRTX is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that VRTX has a Forward P/E ratio of 35.1 right now. This represents a premium compared to its industry's average Forward P/E of 28.48.
It is also worth noting that VRTX currently has a PEG ratio of 1.18. 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 Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.64 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% of all 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.
To follow VRTX in the coming trading sessions, be sure to utilize Zacks.com.
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Vertex Pharmaceuticals (VRTX) Stock Sinks As Market Gains: What You Should Know
Vertex Pharmaceuticals (VRTX - Free Report) closed the most recent trading day at $233.91, moving -0.3% from the previous trading session. This change lagged the S&P 500's 0.11% gain on the day. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 0.2%.
Heading into today, shares of the drugmaker had gained 6.37% over the past month, outpacing the Medical sector's gain of 0.94% and the S&P 500's gain of 3.25% in that time.
VRTX will be looking to display strength as it nears its next earnings release, which is expected to be January 30, 2020. In that report, analysts expect VRTX to post earnings of $1.20 per share. This would mark a year-over-year decline of 7.69%. Our most recent consensus estimate is calling for quarterly revenue of $996.44 million, up 14.52% from the year-ago period.
Any recent changes to analyst estimates for VRTX should also be noted by investors. 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. VRTX is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that VRTX has a Forward P/E ratio of 35.1 right now. This represents a premium compared to its industry's average Forward P/E of 28.48.
It is also worth noting that VRTX currently has a PEG ratio of 1.18. 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 Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.64 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% of all 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.
To follow VRTX in the coming trading sessions, be sure to utilize Zacks.com.