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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 $288.75, marking a +1.95% move from the previous day. This change outpaced the S&P 500's 0.7% gain on the day. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 7.5%.
Prior to today's trading, shares of the drugmaker had lost 9.85% over the past month. This has lagged the Medical sector's loss of 1.89% and the S&P 500's loss of 0.94% in that time.
Vertex Pharmaceuticals will be looking to display strength as it nears its next earnings release. In that report, analysts expect Vertex Pharmaceuticals to post earnings of $3.55 per share. This would mark year-over-year growth of 5.34%. Meanwhile, our latest consensus estimate is calling for revenue of $2.29 billion, up 10.45% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Vertex Pharmaceuticals. These revisions help to show the ever-changing nature of 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.32% lower. Vertex Pharmaceuticals is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Vertex Pharmaceuticals is holding a Forward P/E ratio of 18.2. Its industry sports an average Forward P/E of 19.96, so we one might conclude that Vertex Pharmaceuticals is trading at a discount comparatively.
Investors should also note that VRTX has a PEG ratio of 1.95 right now. 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 1.58 at yesterday's closing price.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% 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 $288.75, marking a +1.95% move from the previous day. This change outpaced the S&P 500's 0.7% gain on the day. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 7.5%.
Prior to today's trading, shares of the drugmaker had lost 9.85% over the past month. This has lagged the Medical sector's loss of 1.89% and the S&P 500's loss of 0.94% in that time.
Vertex Pharmaceuticals will be looking to display strength as it nears its next earnings release. In that report, analysts expect Vertex Pharmaceuticals to post earnings of $3.55 per share. This would mark year-over-year growth of 5.34%. Meanwhile, our latest consensus estimate is calling for revenue of $2.29 billion, up 10.45% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Vertex Pharmaceuticals. These revisions help to show the ever-changing nature of 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.32% lower. Vertex Pharmaceuticals is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Vertex Pharmaceuticals is holding a Forward P/E ratio of 18.2. Its industry sports an average Forward P/E of 19.96, so we one might conclude that Vertex Pharmaceuticals is trading at a discount comparatively.
Investors should also note that VRTX has a PEG ratio of 1.95 right now. 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 1.58 at yesterday's closing price.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% 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.