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Vertex Pharmaceuticals (VRTX) Stock Slides as Market Rises: Facts to Know Before You Trade

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Vertex Pharmaceuticals (VRTX - Free Report) closed the most recent trading day at $440.68, moving -0.72% from the previous trading session. This change lagged the S&P 500's daily gain of 0.92%. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 2.03%.

Heading into today, shares of the drugmaker had gained 11.15% over the past month, outpacing the Medical sector's gain of 3.83% and the S&P 500's gain of 0.81% in that time.

The upcoming earnings release of Vertex Pharmaceuticals will be of great interest to investors. The company's earnings report is expected on February 10, 2025. The company's earnings per share (EPS) are projected to be $4, reflecting a 4.76% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.78 billion, up 10.29% from the prior-year quarter.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Vertex Pharmaceuticals. Such recent modifications usually signify the changing landscape 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 shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.34% downward. 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 24.39. This signifies a premium in comparison to the average Forward P/E of 22.85 for its industry.

Also, we should mention that VRTX has a PEG ratio of 2. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.39 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 72, this industry ranks in the top 29% of all industries, numbering over 250.

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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