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Vertex Pharmaceuticals (VRTX) Stock Declines While Market Improves: Some Information for Investors

Vertex Pharmaceuticals (VRTX) closed the latest trading day at $475.79, indicating a -1.19% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.85% for the day. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq appreciated by 1.53%.

Shares of the drugmaker have appreciated by 12.35% over the course of the past month, outperforming the Medical sector's gain of 2.46% and the S&P 500's gain of 3.11%.

The investment community will be closely monitoring the performance of Vertex Pharmaceuticals in its forthcoming earnings report. The company is predicted to post an EPS of $4.09, indicating a 5.14% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.63 billion, up 5.3% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $17.06 per share and a revenue of $10.72 billion, demonstrating changes of +12.02% and +8.6%, respectively, from the preceding year.

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Any recent changes to analyst estimates for Vertex Pharmaceuticals should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.4% fall in the Zacks Consensus EPS estimate. Vertex Pharmaceuticals is currently a Zacks Rank #3 (Hold).

From a valuation perspective, Vertex Pharmaceuticals is currently exchanging hands at a Forward P/E ratio of 28.23. This represents a premium compared to its industry's average Forward P/E of 23.87.

One should further note that VRTX currently holds a PEG ratio of 2.21. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Medical - Biomedical and Genetics industry had an average PEG ratio of 1.93 as trading concluded yesterday.

The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 34% of over 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report

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