Vertex Pharmaceuticals (VRTX) ended the recent trading session at $402.49, demonstrating a -1.13% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.55%. On the other hand, the Dow registered a loss of 0.06%, and the technology-centric Nasdaq increased by 1.24%.
The investment community will be closely monitoring the performance of Vertex Pharmaceuticals in its forthcoming earnings report. The company is forecasted to report an EPS of $4, showcasing a 4.76% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.77 billion, reflecting a 10.18% rise from the equivalent quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Vertex Pharmaceuticals. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.03% downward. Vertex Pharmaceuticals currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Vertex Pharmaceuticals is at present trading with a Forward P/E ratio of 22.31. Its industry sports an average Forward P/E of 22.82, so one might conclude that Vertex Pharmaceuticals is trading at a discount comparatively.
Investors should also note that VRTX has a PEG ratio of 1.83 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.54 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 28% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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 Incorporated (VRTX) : Free Stock Analysis Report
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