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Vertex Pharmaceuticals (VRTX) Dips More Than Broader Markets: What You Should Know

Vertex Pharmaceuticals (VRTX) closed the most recent trading day at $211.54, moving -0.96% from the previous trading session. This change lagged the S&P 500's daily loss of 0.55%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 2.01%.

Heading into today, shares of the drugmaker had lost 1.32% over the past month, outpacing the Medical sector's loss of 1.6% and lagging the S&P 500's gain of 0.84% in that time.

VRTX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.74, up 7.03% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.66 billion, up 9.49% from the year-ago period.

VRTX's full-year Zacks Consensus Estimates are calling for earnings of $11.26 per share and revenue of $6.87 billion. These results would represent year-over-year changes of +9.11% and +10.68%, respectively.

It is also important to note the recent changes to analyst estimates for VRTX. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. VRTX is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, VRTX currently has a Forward P/E ratio of 18.97. This represents a discount compared to its industry's average Forward P/E of 24.46.

Also, we should mention that VRTX has a PEG ratio of 1.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.5 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 28% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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