Vertex Pharmaceuticals (VRTX) Ascends But Remains Behind Market: Some Facts to Note
Vertex Pharmaceuticals (VRTX) closed the latest trading day at $484.94, indicating a +0.67% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.77%. On the other hand, the Dow registered a gain of 0.47%, and the technology-centric Nasdaq increased by 0.87%.
The drugmaker's shares have seen a decrease of 0.75% over the last month, surpassing the Medical sector's loss of 3% and falling behind the S&P 500's gain of 4.87%.
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 report is set to go public on November 4, 2024. The company is predicted to post an EPS of $4.11, indicating a 0.74% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.68 billion, up 7.83% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.05 per share and revenue of $10.74 billion, which would represent changes of -99.67% and +8.84%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Vertex Pharmaceuticals. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Vertex Pharmaceuticals currently has a Zacks Rank of #5 (Strong Sell).
With respect to valuation, Vertex Pharmaceuticals is currently being traded at a Forward P/E ratio of 10389.82. This represents a premium compared to its industry's average Forward P/E of 22.58.
Investors should also note that VRTX has a PEG ratio of 831.19 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. The Medical - Biomedical and Genetics industry had an average PEG ratio of 2.28 as trading concluded yesterday.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 35% of all 250+ industries.
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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Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report