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Vertex Pharmaceuticals (VRTX) Gains As Market Dips: What You Should Know
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Vertex Pharmaceuticals (VRTX - Free Report) closed the most recent trading day at $285.30, moving +0.98% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.06%. Elsewhere, the Dow gained 0.72%, while the tech-heavy Nasdaq added 0.64%.
Prior to today's trading, shares of the drugmaker had gained 12.16% over the past month. This has outpaced the Medical sector's loss of 0.06% and the S&P 500's gain of 0.17% in that time.
Investors will be hoping for strength from Vertex Pharmaceuticals as it approaches its next earnings release. The company is expected to report EPS of $3.60, up 20.81% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 $14.58 per share and revenue of $8.55 billion. These totals would mark changes of +11.98% and +12.93%, respectively, from last year.
It is also important to note the recent changes to analyst estimates 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.
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 0.54% higher within the past month. Vertex Pharmaceuticals currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Vertex Pharmaceuticals currently has a Forward P/E ratio of 19.37. For comparison, its industry has an average Forward P/E of 22.72, which means Vertex Pharmaceuticals is trading at a discount to the group.
Investors should also note that VRTX has a PEG ratio of 1.25 right now. 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 industry currently had an average PEG ratio of 1.32 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Vertex Pharmaceuticals (VRTX) Gains As Market Dips: What You Should Know
Vertex Pharmaceuticals (VRTX - Free Report) closed the most recent trading day at $285.30, moving +0.98% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.06%. Elsewhere, the Dow gained 0.72%, while the tech-heavy Nasdaq added 0.64%.
Prior to today's trading, shares of the drugmaker had gained 12.16% over the past month. This has outpaced the Medical sector's loss of 0.06% and the S&P 500's gain of 0.17% in that time.
Investors will be hoping for strength from Vertex Pharmaceuticals as it approaches its next earnings release. The company is expected to report EPS of $3.60, up 20.81% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 $14.58 per share and revenue of $8.55 billion. These totals would mark changes of +11.98% and +12.93%, respectively, from last year.
It is also important to note the recent changes to analyst estimates 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.
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 0.54% higher within the past month. Vertex Pharmaceuticals currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Vertex Pharmaceuticals currently has a Forward P/E ratio of 19.37. For comparison, its industry has an average Forward P/E of 22.72, which means Vertex Pharmaceuticals is trading at a discount to the group.
Investors should also note that VRTX has a PEG ratio of 1.25 right now. 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 industry currently had an average PEG ratio of 1.32 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.