Vertex Pharmaceuticals (VRTX) Ascends While Market Falls: Some Facts to Note

Vertex Pharmaceuticals (VRTX) ended the recent trading session at $381.87, demonstrating a +1.39% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.5%. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 0.5%. Shares of the drugmaker witnessed a loss of 3.2% over the previous month, trailing the performance of the Medical sector with its loss of 0.7%, and the S&P 500's gain of 2.74%.The investment community will be closely monitoring the performance of Vertex Pharmaceuticals in its forthcoming earnings report. In that report, analysts expect Vertex Pharmaceuticals to post earnings of $4.56 per share. This would mark year-over-year growth of 4.11%. Meanwhile, the latest consensus estimate predicts the revenue to be $3.04 billion, indicating a 9.8% increase compared to the same quarter of the previous year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $17.98 per share and revenue of $11.98 billion, indicating changes of +4180.95% and +8.75%, respectively, compared to the previous year. It is also important to note the recent changes to analyst estimates for Vertex Pharmaceuticals. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Vertex Pharmaceuticals holds a Zacks Rank of #3 (Hold). Valuation is also important, so investors should note that Vertex Pharmaceuticals has a Forward P/E ratio of 20.95 right now. Its industry sports an average Forward P/E of 19.43, so one might conclude that Vertex Pharmaceuticals is trading at a premium comparatively. The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 88, putting it in the top 36% of all 250+ industries. The Zacks Industry Rank is ordered 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. You can find more information on all of these metrics, and much more, on Zacks.com. Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks