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Vertex Pharmaceuticals (VRTX) Stock Sinks As Market Gains: What You Should Know

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Vertex Pharmaceuticals (VRTX) closed at $246.61 in the latest trading session, marking a -1.22% move from the prior day. This change lagged the S&P 500's 1.45% gain on the day. Meanwhile, the Dow gained 1.22%, and the Nasdaq, a tech-heavy index, added 0.78%.

Heading into today, shares of the drugmaker had gained 13.31% over the past month, outpacing the Medical sector's loss of 6.04% and the S&P 500's loss of 7.42% in that time.

Wall Street will be looking for positivity from VRTX as it approaches its next earnings report date. On that day, VRTX is projected to report earnings of $1.74 per share, which would represent year-over-year growth of 52.63%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.25 billion, up 46.1% from the year-ago period.

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.

Investors should also note any recent changes to analyst estimates for VRTX. These revisions help to show the ever-changing nature of near-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 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 has moved 3.02% lower. VRTX is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, VRTX is holding a Forward P/E ratio of 33.42. This valuation marks a premium compared to its industry's average Forward P/E of 28.4.

Meanwhile, VRTX's PEG ratio is currently 1.18. 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. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.72 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 24, putting it in the top 10% 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.

To follow VRTX in the coming trading sessions, be sure to utilize Zacks.com.

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