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Vertex Pharmaceuticals (VRTX) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Vertex Pharmaceuticals (VRTX - Free Report) closed at $288.98, marking a +0.58% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.16%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.48%.
Prior to today's trading, shares of the drugmaker had gained 7.21% over the past month. This has outpaced the Medical sector's loss of 1.13% and the S&P 500's loss of 6.79% in that time.
Wall Street will be looking for positivity from Vertex Pharmaceuticals as it approaches its next earnings report date. The company is expected to report EPS of $3.56, up 14.47% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.13 billion, up 19% from the year-ago period.
VRTX's full-year Zacks Consensus Estimates are calling for earnings of $14.13 per share and revenue of $8.58 billion. These results would represent year-over-year changes of +8.53% and +13.3%, respectively.
It is also important to note the recent changes to analyst estimates for Vertex Pharmaceuticals. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Vertex Pharmaceuticals is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Vertex Pharmaceuticals has a Forward P/E ratio of 20.33 right now. This represents a discount compared to its industry's average Forward P/E of 20.97.
Also, we should mention that VRTX has a PEG ratio of 1.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. VRTX's industry had an average PEG ratio of 1.1 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Vertex Pharmaceuticals (VRTX) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Vertex Pharmaceuticals (VRTX - Free Report) closed at $288.98, marking a +0.58% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.16%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.48%.
Prior to today's trading, shares of the drugmaker had gained 7.21% over the past month. This has outpaced the Medical sector's loss of 1.13% and the S&P 500's loss of 6.79% in that time.
Wall Street will be looking for positivity from Vertex Pharmaceuticals as it approaches its next earnings report date. The company is expected to report EPS of $3.56, up 14.47% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.13 billion, up 19% from the year-ago period.
VRTX's full-year Zacks Consensus Estimates are calling for earnings of $14.13 per share and revenue of $8.58 billion. These results would represent year-over-year changes of +8.53% and +13.3%, respectively.
It is also important to note the recent changes to analyst estimates for Vertex Pharmaceuticals. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Vertex Pharmaceuticals is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Vertex Pharmaceuticals has a Forward P/E ratio of 20.33 right now. This represents a discount compared to its industry's average Forward P/E of 20.97.
Also, we should mention that VRTX has a PEG ratio of 1.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. VRTX's industry had an average PEG ratio of 1.1 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.