Yahoo Finance Vertex Pharmaceuticals (VRTX) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest market close, Vertex Pharmaceuticals (VRTX) reached $400.16, with a -0.49% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.91%. Meanwhile, the Dow experienced a rise of 0.85%, and the technology-dominated Nasdaq saw an increase of 1.51%.
The the stock of drugmaker has fallen by 1.63% in the past month, leading the Medical sector's loss of 2.73% and the S&P 500's loss of 4.2%.
Market participants will be closely following the financial results of Vertex Pharmaceuticals in its upcoming release. The company plans to announce its earnings on May 6, 2024. It is anticipated that the company will report an EPS of $4.10, marking a 34.43% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.56 billion, indicating a 7.75% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $16.76 per share and revenue of $10.69 billion. These totals would mark changes of +10.05% and +8.29%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Vertex Pharmaceuticals. 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.04% rise in the Zacks Consensus EPS estimate. At present, Vertex Pharmaceuticals boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Vertex Pharmaceuticals is currently being traded at a Forward P/E ratio of 23.99. For comparison, its industry has an average Forward P/E of 23.24, which means Vertex Pharmaceuticals is trading at a premium to the group.
One should further note that VRTX currently holds a PEG ratio of 1.69. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Medical - Biomedical and Genetics industry held an average PEG ratio of 1.77.
The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 70, placing it within the top 28% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report
