Vertex Pharmaceuticals (VRTX) closed the most recent trading day at $410.71, moving -0.05% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.8%. Elsewhere, the Dow saw a downswing of 0.76%, while the tech-heavy Nasdaq depreciated by 1.18%.
Heading into today, shares of the drugmaker had gained 16.03% over the past month, outpacing the Medical sector's gain of 5.8% and the S&P 500's gain of 3.4% in that time.
The investment community will be paying close attention to the earnings performance of Vertex Pharmaceuticals in its upcoming release. The company is expected to report EPS of $4.08, up 8.51% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.5 billion, up 8.52% from the prior-year quarter.
Any recent changes to analyst estimates for Vertex Pharmaceuticals should also be noted by investors. These revisions help to show the ever-changing nature of 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. Vertex Pharmaceuticals is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Vertex Pharmaceuticals has a Forward P/E ratio of 24.82 right now. 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 2.24 right now. 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. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.9 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 31% of over 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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