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Vertex Pharmaceuticals (VRTX) Stock Sinks As Market Gains: What You Should Know
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Vertex Pharmaceuticals (VRTX - Free Report) closed the most recent trading day at $325.15, moving -0.79% from the previous trading session. This move lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 2.51%.
Heading into today, shares of the drugmaker had gained 9.63% over the past month, outpacing the Medical sector's gain of 6.47% and the S&P 500's gain of 6.17% in that time.
Investors will be hoping for strength from Vertex Pharmaceuticals as it approaches its next earnings release, which is expected to be May 1, 2023. The company is expected to report EPS of $2.95, down 16.19% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.3 billion, up 9.67% from the year-ago period.
VRTX's full-year Zacks Consensus Estimates are calling for earnings of $14 per share and revenue of $9.64 billion. These results would represent year-over-year changes of -5.91% and +7.94%, respectively.
Investors should also note any 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.54% lower. Vertex Pharmaceuticals currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Vertex Pharmaceuticals is currently trading at a Forward P/E ratio of 23.41. For comparison, its industry has an average Forward P/E of 21.08, which means Vertex Pharmaceuticals is trading at a premium to the group.
Meanwhile, VRTX's PEG ratio is currently 2.52. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.99 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% 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.
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) Stock Sinks As Market Gains: What You Should Know
Vertex Pharmaceuticals (VRTX - Free Report) closed the most recent trading day at $325.15, moving -0.79% from the previous trading session. This move lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 2.51%.
Heading into today, shares of the drugmaker had gained 9.63% over the past month, outpacing the Medical sector's gain of 6.47% and the S&P 500's gain of 6.17% in that time.
Investors will be hoping for strength from Vertex Pharmaceuticals as it approaches its next earnings release, which is expected to be May 1, 2023. The company is expected to report EPS of $2.95, down 16.19% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.3 billion, up 9.67% from the year-ago period.
VRTX's full-year Zacks Consensus Estimates are calling for earnings of $14 per share and revenue of $9.64 billion. These results would represent year-over-year changes of -5.91% and +7.94%, respectively.
Investors should also note any 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.54% lower. Vertex Pharmaceuticals currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Vertex Pharmaceuticals is currently trading at a Forward P/E ratio of 23.41. For comparison, its industry has an average Forward P/E of 21.08, which means Vertex Pharmaceuticals is trading at a premium to the group.
Meanwhile, VRTX's PEG ratio is currently 2.52. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.99 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.