Vertex Pharmaceuticals (VRTX) ended the recent trading session at $468.09, demonstrating a +0.94% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.38% gain on the day. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw an increase of 1.24%.
The drugmaker's shares have seen a decrease of 0.42% over the last month, surpassing the Medical sector's loss of 4.06% and falling behind the S&P 500's gain of 1.17%.
Analysts and investors alike will be keeping a close eye on the performance of Vertex Pharmaceuticals in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $4.07, reflecting a 3.1% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.77 billion, indicating a 10.11% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.50 per share and revenue of $10.88 billion, indicating changes of -96.72% and +10.27%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Vertex Pharmaceuticals should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.09% decrease. As of now, Vertex Pharmaceuticals holds a Zacks Rank of #3 (Hold).
With respect to valuation, Vertex Pharmaceuticals is currently being traded at a Forward P/E ratio of 934.65. This represents a premium compared to its industry's average Forward P/E of 22.96.
It's also important to note that VRTX currently trades at a PEG ratio of 76.61. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.79 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 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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