Vertex Pharmaceuticals (VRTX) closed the most recent trading day at $345.76, moving -0.73% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.79%. Meanwhile, the Dow lost 1.07%, and the Nasdaq, a tech-heavy index, lost 2.71%.
Coming into today, shares of the drugmaker had gained 7.29% in the past month. In that same time, the Medical sector lost 0.35%, while the S&P 500 gained 4.16%.
Wall Street will be looking for positivity from Vertex Pharmaceuticals as it approaches its next earnings report date. This is expected to be August 1, 2023. On that day, Vertex Pharmaceuticals is projected to report earnings of $3.82 per share, which would represent year-over-year growth of 6.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.41 billion, up 9.72% from the year-ago period.
VRTX's full-year Zacks Consensus Estimates are calling for earnings of $14.51 per share and revenue of $9.74 billion. These results would represent year-over-year changes of -2.49% and +9.08%, respectively.
Any recent changes to analyst estimates for Vertex Pharmaceuticals should also be noted by investors. Recent revisions tend to reflect the latest 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% higher. Vertex Pharmaceuticals is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Vertex Pharmaceuticals is currently trading at a Forward P/E ratio of 24.01. This valuation marks a premium compared to its industry's average Forward P/E of 18.97.
Investors should also note that VRTX has a PEG ratio of 2.92 right now. 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 1.85 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 101, which puts it in the top 41% 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.
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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