Yahoo Finance Vertex Pharmaceuticals (VRTX) Falls More Steeply Than Broader Market: What Investors Need to Know
Vertex Pharmaceuticals (VRTX) closed the most recent trading day at $397.70, moving -0.76% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.46%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 0.64%.
The drugmaker's shares have seen a decrease of 3.97% over the last month, surpassing the Medical sector's loss of 4.9% and falling behind the S&P 500's loss of 3.04%.
The investment community will be closely monitoring the performance of Vertex Pharmaceuticals in its forthcoming earnings report. The company is scheduled to release its earnings on May 6, 2024. In that report, analysts expect Vertex Pharmaceuticals to post earnings of $4.10 per share. This would mark year-over-year growth of 34.43%. Meanwhile, our latest consensus estimate is calling for revenue of $2.56 billion, up 7.75% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $16.76 per share and revenue of $10.69 billion, indicating changes of +10.05% and +8.29%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Vertex Pharmaceuticals. 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. Vertex Pharmaceuticals currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Vertex Pharmaceuticals is holding a Forward P/E ratio of 23.91. For comparison, its industry has an average Forward P/E of 23.02, which means Vertex Pharmaceuticals is trading at a premium to the group.
We can additionally observe that VRTX currently boasts a PEG ratio of 1.68. 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. VRTX's industry had an average PEG ratio of 1.68 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 69, this industry ranks in the top 28% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report
