Vertex Pharmaceuticals (VRTX) Advances But Underperforms Market: Key Facts

Vertex Pharmaceuticals (VRTX) closed the most recent trading day at $492.47, moving +0.01% from the previous trading session. This move lagged the S&P 500's daily gain of 2.03%. Elsewhere, the Dow gained 1.23%, while the tech-heavy Nasdaq added 2.74%.The drugmaker's shares have seen a decrease of 1.57% over the last month, surpassing the Medical sector's loss of 8.57% and the S&P 500's loss of 5.07%.Analysts and investors alike will be keeping a close eye on the performance of Vertex Pharmaceuticals in its upcoming earnings disclosure. The company's earnings report is set to go public on May 5, 2025. It is anticipated that the company will report an EPS of $4.22, marking a 11.34% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.82 billion, indicating a 4.76% upward movement from the same quarter last year.For the full year, the Zacks Consensus Estimates are projecting earnings of $17.69 per share and revenue of $11.86 billion, which would represent changes of +4111.9% and +7.63%, respectively, from the prior year.It is also important to note the recent changes to analyst estimates for Vertex Pharmaceuticals. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.61% fall in the Zacks Consensus EPS estimate. Vertex Pharmaceuticals currently has a Zacks Rank of #3 (Hold).In terms of valuation, Vertex Pharmaceuticals is presently being traded at a Forward P/E ratio of 27.84. For comparison, its industry has an average Forward P/E of 15.96, which means Vertex Pharmaceuticals is trading at a premium to the group.One should further note that VRTX currently holds a PEG ratio of 0.87. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Medical - Biomedical and Genetics industry held an average PEG ratio of 1.26.The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 32% of all 250+ industries.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.To follow VRTX in the coming trading sessions, be sure to utilize Zacks.com.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for 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