In the latest trading session, Vertex Pharmaceuticals (VRTX - Free Report) closed at $291.18, marking a -1.56% move from the previous day. This change was narrower than the S&P 500's daily loss of 2.59%. Elsewhere, the Dow lost 2.72%, while the tech-heavy Nasdaq lost 2.19%.
Investors will be hoping for strength from VRTX as it approaches its next earnings release. On that day, VRTX is projected to report earnings of $2.13 per share, which would represent year-over-year growth of 69.05%. Meanwhile, our latest consensus estimate is calling for revenue of $1.40 billion, up 48.8% from the prior-year quarter.
VRTX's full-year Zacks Consensus Estimates are calling for earnings of $8.91 per share and revenue of $5.71 billion. These results would represent year-over-year changes of +67.17% and +37.08%, respectively.
Investors should also note any recent changes to analyst estimates for VRTX. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. VRTX currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that VRTX has a Forward P/E ratio of 33.2 right now. For comparison, its industry has an average Forward P/E of 29.63, which means VRTX is trading at a premium to the group.
Meanwhile, VRTX's PEG ratio is currently 1.17. 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 was holding an average PEG ratio of 2.02 at yesterday's closing price.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.