Vertex Pharmaceuticals (VRTX) closed the most recent trading day at $238.31, moving -1.59% from the previous trading session. This move lagged the S&P 500's daily loss of 1.51%. Meanwhile, the Dow lost 1.69%, and the Nasdaq, a tech-heavy index, lost 1.53%.
Prior to today's trading, shares of the drugmaker had gained 2.04% over the past month. This has outpaced the Medical sector's loss of 10.33% and the S&P 500's loss of 18.13% in that time.
Investors will be hoping for strength from VRTX as it approaches its next earnings release. The company is expected to report EPS of $1.74, up 52.63% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.25 billion, up 46.1% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.47 per share and revenue of $5.23 billion. These totals would mark changes of +40.15% and +25.68%, respectively, from last year.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.02% lower within the past month. VRTX is currently a Zacks Rank #3 (Hold).
In terms of valuation, VRTX is currently trading at a Forward P/E ratio of 32.42. This valuation marks a premium compared to its industry's average Forward P/E of 27.51.
Meanwhile, VRTX's PEG ratio is currently 1.14. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.54 at yesterday's closing price.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.