Advertisement
Australia markets open in 34 minutes
  • ALL ORDS

    8,166.40
    -42.80 (-0.52%)
     
  • AUD/USD

    0.6643
    -0.0003 (-0.04%)
     
  • ASX 200

    7,931.70
    -39.90 (-0.50%)
     
  • OIL

    79.95
    +0.17 (+0.21%)
     
  • GOLD

    2,396.40
    +1.70 (+0.07%)
     
  • Bitcoin AUD

    101,667.45
    -872.07 (-0.85%)
     
  • CMC Crypto 200

    1,384.36
    -20.98 (-1.49%)
     

Vertex Pharmaceuticals (VRTX) Ascends While Market Falls: Some Facts to Note

In the latest trading session, Vertex Pharmaceuticals (VRTX) closed at $474.95, marking a +1.33% move from the previous day. This change outpaced the S&P 500's 0.31% loss on the day. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, lost 1.09%.

Prior to today's trading, shares of the drugmaker had gained 2.57% over the past month. This has outpaced the Medical sector's gain of 0.61% and lagged the S&P 500's gain of 2.73% in that time.

The upcoming earnings release of Vertex Pharmaceuticals will be of great interest to investors. The company's earnings per share (EPS) are projected to be $4.10, reflecting a 5.4% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.63 billion, indicating a 5.3% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.13 per share and revenue of $10.72 billion. These totals would mark changes of +12.48% and +8.6%, respectively, from last year.

ADVERTISEMENT

Investors should also take note of any recent adjustments to analyst estimates for Vertex Pharmaceuticals. Such recent modifications usually signify the changing landscape 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. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.22% increase. Vertex Pharmaceuticals currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Vertex Pharmaceuticals currently has a Forward P/E ratio of 27.36. This denotes a premium relative to the industry's average Forward P/E of 24.

It's also important to note that VRTX currently trades at a PEG ratio of 2.14. 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 1.94 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research