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Vertex Pharmaceuticals (VRTX) Declines More Than Market: Some Information for Investors
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Vertex Pharmaceuticals (VRTX - Free Report) ended the recent trading session at $355.28, demonstrating a -1.66% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.48% for the day. At the same time, the Dow lost 1.12%, and the tech-heavy Nasdaq gained 0.38%.
Shares of the drugmaker have appreciated by 2.49% over the course of the past month, outperforming the Medical sector's loss of 5.4% and the S&P 500's loss of 2.65%.
Market participants will be closely following the financial results of Vertex Pharmaceuticals in its upcoming release. The company plans to announce its earnings on November 6, 2023. In that report, analysts expect Vertex Pharmaceuticals to post earnings of $3.91 per share. This would mark a year-over-year decline of 2.49%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.49 billion, indicating a 6.5% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.57 per share and a revenue of $9.84 billion, representing changes of -2.08% and +10.15%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.34% 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 24.81. This valuation marks a premium compared to its industry's average Forward P/E of 16.45.
One should further note that VRTX currently holds a PEG ratio of 2.47. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Medical - Biomedical and Genetics industry had an average PEG ratio of 1.69.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
To follow VRTX in the coming trading sessions, be sure to utilize Zacks.com.
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Vertex Pharmaceuticals (VRTX) Declines More Than Market: Some Information for Investors
Vertex Pharmaceuticals (VRTX - Free Report) ended the recent trading session at $355.28, demonstrating a -1.66% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.48% for the day. At the same time, the Dow lost 1.12%, and the tech-heavy Nasdaq gained 0.38%.
Shares of the drugmaker have appreciated by 2.49% over the course of the past month, outperforming the Medical sector's loss of 5.4% and the S&P 500's loss of 2.65%.
Market participants will be closely following the financial results of Vertex Pharmaceuticals in its upcoming release. The company plans to announce its earnings on November 6, 2023. In that report, analysts expect Vertex Pharmaceuticals to post earnings of $3.91 per share. This would mark a year-over-year decline of 2.49%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.49 billion, indicating a 6.5% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.57 per share and a revenue of $9.84 billion, representing changes of -2.08% and +10.15%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.34% 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 24.81. This valuation marks a premium compared to its industry's average Forward P/E of 16.45.
One should further note that VRTX currently holds a PEG ratio of 2.47. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Medical - Biomedical and Genetics industry had an average PEG ratio of 1.69.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
To follow VRTX in the coming trading sessions, be sure to utilize Zacks.com.