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Vertex Pharmaceuticals (VRTX) Outperforms Broader Market: What You Need to Know

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In the latest trading session, Vertex Pharmaceuticals (VRTX - Free Report) closed at $495.29, marking a +1.42% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.49%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq added 1.22%.

Shares of the drugmaker have appreciated by 7.28% over the course of the past month, outperforming the Medical sector's loss of 1.05% and the S&P 500's loss of 8.15%.

The upcoming earnings release of Vertex Pharmaceuticals will be of great interest to investors. The company's earnings per share (EPS) are projected to be $4.19, reflecting a 11.97% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.81 billion, up 4.56% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.65 per share and revenue of $11.85 billion. These totals would mark changes of +4102.38% and +7.56%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Vertex Pharmaceuticals. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 moved 1.56% lower. Vertex Pharmaceuticals is currently a Zacks Rank #3 (Hold).

With respect to valuation, Vertex Pharmaceuticals is currently being traded at a Forward P/E ratio of 27.67. This represents a premium compared to its industry's average Forward P/E of 18.97.

We can additionally observe that VRTX currently boasts a PEG ratio of 1.19. 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. As the market closed yesterday, the Medical - Biomedical and Genetics industry was having an average PEG ratio of 1.54.

The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 73, placing it within the top 30% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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