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Vertex Pharmaceuticals (VRTX) Gains But Lags Market: What You Should Know
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Vertex Pharmaceuticals (VRTX - Free Report) closed the most recent trading day at $251.88, moving +0.65% from the previous trading session. This change lagged the S&P 500's 1.13% gain on the day. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 0.91%.
Coming into today, shares of the drugmaker had gained 8.99% in the past month. In that same time, the Medical sector gained 5.72%, while the S&P 500 gained 2.65%.
Vertex Pharmaceuticals will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.59, up 20.47% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.08 billion, up 20.69% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.52 per share and revenue of $8.55 billion. These totals would mark changes of +11.52% and +12.93%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Vertex Pharmaceuticals. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 2.48% higher within the past month. Vertex Pharmaceuticals is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Vertex Pharmaceuticals is holding a Forward P/E ratio of 17.23. Its industry sports an average Forward P/E of 21.86, so we one might conclude that Vertex Pharmaceuticals is trading at a discount comparatively.
It is also worth noting that VRTX currently has a PEG ratio of 1.11. 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. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.16 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 161, which puts it in the bottom 37% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Vertex Pharmaceuticals (VRTX) Gains But Lags Market: What You Should Know
Vertex Pharmaceuticals (VRTX - Free Report) closed the most recent trading day at $251.88, moving +0.65% from the previous trading session. This change lagged the S&P 500's 1.13% gain on the day. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 0.91%.
Coming into today, shares of the drugmaker had gained 8.99% in the past month. In that same time, the Medical sector gained 5.72%, while the S&P 500 gained 2.65%.
Vertex Pharmaceuticals will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.59, up 20.47% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.08 billion, up 20.69% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.52 per share and revenue of $8.55 billion. These totals would mark changes of +11.52% and +12.93%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Vertex Pharmaceuticals. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 2.48% higher within the past month. Vertex Pharmaceuticals is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Vertex Pharmaceuticals is holding a Forward P/E ratio of 17.23. Its industry sports an average Forward P/E of 21.86, so we one might conclude that Vertex Pharmaceuticals is trading at a discount comparatively.
It is also worth noting that VRTX currently has a PEG ratio of 1.11. 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. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.16 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 161, which puts it in the bottom 37% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.