Vertex Pharmaceuticals (VRTX) Stock Sinks As Market Gains: What You Should Know
Vertex Pharmaceuticals (VRTX) closed the most recent trading day at $308.47, moving -1.88% from the previous trading session. This move lagged the S&P 500's daily gain of 0.17%. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 0.67%.
Prior to today's trading, shares of the drugmaker had gained 9.4% over the past month. This has outpaced the Medical sector's gain of 0.23% and the S&P 500's gain of 0.25% in that time.
Investors will be hoping for strength from Vertex Pharmaceuticals as it approaches its next earnings release. On that day, Vertex Pharmaceuticals is projected to report earnings of $3.09 per share, which would represent a year-over-year decline of 12.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.3 billion, up 9.67% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.18 per share and revenue of $9.64 billion. These totals would mark changes of -4.7% and +7.94%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Vertex Pharmaceuticals. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. The Zacks Consensus EPS estimate has moved 0.42% lower within the past month. Vertex Pharmaceuticals is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, Vertex Pharmaceuticals is holding a Forward P/E ratio of 22.17. For comparison, its industry has an average Forward P/E of 19.07, which means Vertex Pharmaceuticals is trading at a premium to the group.
It is also worth noting that VRTX currently has a PEG ratio of 2.39. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.74 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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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