Vertex Pharmaceuticals (VRTX) closed at $350.67 in the latest trading session, marking a +0.33% move from the prior day. This move lagged the S&P 500's daily gain of 0.4%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq gained 0.45%.
Heading into today, shares of the drugmaker had lost 0.15% over the past month, outpacing the Medical sector's loss of 5.26% and the S&P 500's loss of 1.38% in that time.
Investors will be hoping for strength from Vertex Pharmaceuticals as it approaches its next earnings release. In that report, analysts expect Vertex Pharmaceuticals to post earnings of $3.93 per share. This would mark a year-over-year decline of 2%. Our most recent consensus estimate is calling for quarterly revenue of $2.49 billion, up 6.5% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.66 per share and revenue of $9.84 billion. These totals would mark changes of -1.48% and +10.15%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Vertex Pharmaceuticals. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.13% higher within the past month. Vertex Pharmaceuticals is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Vertex Pharmaceuticals is holding a Forward P/E ratio of 23.85. Its industry sports an average Forward P/E of 16.9, so we one might conclude that Vertex Pharmaceuticals is trading at a premium comparatively.
It is also worth noting that VRTX currently has a PEG ratio of 2.33. 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 2.13 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 93, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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