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Vertex Pharmaceuticals (VRTX) Gains As Market Dips: What You Should Know

Vertex Pharmaceuticals (VRTX) closed at $313.57 in the latest trading session, marking a +0.56% move from the prior day. This change outpaced the S&P 500's 0.07% loss on the day. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, lost 3.22%.

Heading into today, shares of the drugmaker had gained 7.64% over the past month, outpacing the Medical sector's loss of 0.32% and the S&P 500's gain of 4.64% in that time.

Wall Street will be looking for positivity from Vertex Pharmaceuticals as it approaches its next earnings report date. This is expected to be February 7, 2023. In that report, analysts expect Vertex Pharmaceuticals to post earnings of $3.54 per share. This would mark year-over-year growth of 5.04%. Meanwhile, our latest consensus estimate is calling for revenue of $2.29 billion, up 10.55% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for Vertex Pharmaceuticals. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 1.02% lower within the past month. Vertex Pharmaceuticals currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Vertex Pharmaceuticals is currently trading at a Forward P/E ratio of 20.16. This valuation marks a discount compared to its industry's average Forward P/E of 20.73.

We can also see that VRTX currently has a PEG ratio of 1.7. 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 was holding an average PEG ratio of 1.63 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% 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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Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report

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